Why Are Futures Contracts Commonly Believed to Be Less Subject

question 39

Essay

Why are futures contracts commonly believed to be less subject to default risk than forward contracts?

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Definitions:

Innovation Process

A series of steps that includes the generation, development, and implementation of new ideas, products, or processes.

Commercializing Innovation

The process of transforming new ideas, technologies, or inventions into viable commercial products or services.

Technological Conditions

Refers to the current state and advancements of technology within a specific field or the broader environment, influencing business operations and strategies.

Scientific Advancements

The progress achieved in scientific research, leading to new discoveries, innovations, and applications.