Suppose that oil prices decline by 50%. Which counterparty to a forward contract in oil has an

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Suppose that oil prices decline by 50%. Which counterparty to a forward contract in oil has an incentive to default on the contract? Briefly explain.

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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