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When the Futures Price Is Above the Forward Rate, Astute

question 94

Multiple Choice

When the futures price is above the forward rate, astute investors may attempt to simultaneously buy a currency forward and sell futures in that currency. These actions would place ____ pressure on the forward rate and ____ pressure on the futures rate.​

Apply general contract principles to specific scenarios involving misprints, advertisements, and solicitations.
Explain how an offer can be terminated and the effects of said termination on potential contracts.
Understand the legal principles governing offers in contract law.
Identify the necessary components of a valid offer.

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