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Why Are Futures Contracts Commonly Believed to Be Less Subject

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Essay

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


Definitions:

Dispositional Attribution

The tendency to attribute someone's behavior to their personality or disposition.

Situational Attribution

The process of attributing a person's behavior to external or environmental factors.

Critical Thinking

The process of objectively analyzing and evaluating an issue in order to form a judgment.

Social Psychology

Social psychology is the scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

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