The Sum of the Daily Settlements on a Currency Futures

question 32

True/False

The sum of the daily settlements on a currency futures contract equals the net gain or loss at the expiration of a comparable forward contract.

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Definitions:

Market Rate of Return

The average annual return generated from a market or a specific investment over a specific period, often considered a benchmark.

Annual Dividend

The total payment a company makes to its shareholders out of its profits over the course of a year.

Dividend Growing

A situation where a company consistently increases the amount of dividends paid to shareholders over time.

EPS Growth Rate

The annual percentage change in earnings per share, indicating the rate at which a company's profit per share is growing.