Question: 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

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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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 full answer

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