The Major Difference Between Currency Futures and Forward Contracts Is

question 61

True/False

The major difference between currency futures and forward contracts is that futures contracts are standardized for ease of trading on an exchange market whereas forward contracts are specialized and tailored to meet the needs of clients.

Gain knowledge on capital budgeting decisions and the factors influencing these decisions.

Understand the concept of discounted cash flow valuation and its relevance to investment appraisal.

Recognize the limitations and applications of Average Accounting Return (AAR) in investment decisions.

Grasp the implications of cash flows timing on project valuation and the role of discount rates.

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Definitions:

Fair Value

The capital retrieved from trading an asset or the expenditure for reallocating a liability in a well-arranged market transaction at the point of assessing value.

Carry Value

The original purchase cost of an asset adjusted for depreciation, amortization, or impairment costs on the financial statements.

Joint Operation

A business arrangement where two or more parties share control and management of a project or business.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.