At Least One of Two Counterparties in a Forward Contract

question 23

True/False

At least one of two counterparties in a forward contract must be a speculator.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage.

Future Value

The estimated value of an investment or a financial asset at a specific future date, considering factors like interest rates or returns over time.

Interest Factor

A multiplier used to calculate the amount of interest accrued over a certain period of time.