Explain why forward and futures contracts may have different risks, despite both instruments allowing financial market participants

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Explain why forward and futures contracts may have different risks, despite both instruments allowing financial market participants to buy or sell in future periods. What features and mechanisms ensure that this is the case?

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International Financial Management

ISBN: 9780077861605

7th Edition

Authors: Cheol Eun, Bruce Resnick

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Posted Date: Mar 12, 2024 07:27 AM

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Explain why forward and futures contracts may have different risks, despite both instruments allowing financial market participants

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International Financial Management

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