Question
(i) Prove the initial value of a forward contract at the beginning of the contract (where t = 0)? (2 marks) (ii) Explain why futures
(i) Prove the initial value of a forward contract at the beginning of the contract (where t = 0)? (2 marks)
(ii) Explain why futures contracts may have less risk than forward contracts. What features and mechanisms ensure that this is the case? (2 marks)
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Practical Financial Management
Authors: William R. Lasher
4th Edition
0324260768, 9780324260762
