What counterparty risk is involved with forward contracts

Reference no: EM131305290

1. What is counterparty risk? What counterparty risk is involved with forward contracts? Why are investors and firms that enter forward contracts willing to accept counterparty risk?

2. What are the key differences between forward contracts and futures contracts?

3 What is the difference between a commodity future and a financial future? Give two examples of each.

Reference no: EM131305290

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