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Question 10 - Total 6 marks a) In the future contract there are credit risk and basis risk. Discuss why are Credit Risk is less
Question 10 - Total 6 marks a) In the future contract there are credit risk and basis risk. Discuss why are Credit Risk is less pronounced for Futures Contracts as compared to Private Forward Contracts ? (3 marks) b) The size of the pie does not depend on how it is sliced. Which of the M&M propositions can be associated with this statement? Discuss and explain
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