Question
-Briefly explain what a forward contract is and how forward contracts differ from options and futures. -What are the two types of forward contract? Under
-Briefly explain what a forward contract is and how forward contracts differ from options and futures.
-What are the two types of forward contract? Under what circumstances would a profit or loss be made on a forward contract?
-Explain how forward contracts (including forward contracts for shares) can be settled.
-Explain how forward contracts would be classified under AASB 9 Financial Instruments? What are the recognition and derecognition criteria for forward contracts?
-Explain the measurement requirements (on initial recognition and subsequent to initial recognition) for forward contracts in AASB 9 Financial Instruments.
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