EBK THE ECONOMICS OF MONEY, BANKING AND
EBK THE ECONOMICS OF MONEY, BANKING AND
4th Edition
ISBN: 9780100668201
Author: Mishkin
Publisher: YUZU
Question
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Chapter 14, Problem 2Q
To determine

The advantages of future contracts over forward contracts

Context Introduction:

Future contracts − These are agreements of legal nature made for buying or selling a financial tool or product at a preset price in the future specified time. To help futures exchange trading, the future contracts are standardized.

Forward contracts − Customized contracts that take place between parties for selling or buying an asset in a future time at preset price is called forward contract.

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