What advantage does a forward contracts offer

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Problem 1. Given the development of future markets, and the disadvantages of forward contracts, what advantage does a forward contracts offer?

Problem 2. State three differences between the forwards and the futures

Problem 3. Assume you buy several future contracts that, at the expiration date, are worth considerably more than when purchased so that you have a large gain. How can you be assured that the losers on these same positions will make good on their obligations?

Problem 4. The shorts position loss is equal to the long position gain. Explain.

Reference no: EM132965411

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