Explain why forward contracts have been trading for centuries. What economic function do they perform? What improvement

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Explain why forward contracts have been trading for centuries. What economic function do they perform? What improvement did futures contracts provide over forward contracts? Explain your answer.

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 03:13 AM

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Explain why forward contracts have been trading for centuries. What economic function do they perform? What improvement

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A forward contract is a binding agreement between a buyer and a seller to trade some commodity at a fixed price at a later date Because a forward fixe...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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