Futures Contracts Are Identical to Forward Contracts

question 22

True/False

Futures contracts are identical to forward contracts.

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Definitions:

Interaction Term

In statistics, an interaction term is used in models to determine if the effect of two or more variables on a response variable is not additive, indicating that the variables interact in how they influence the response.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Regression Equation

A formula that expresses the linear relationship between independent and dependent variables.

Least-Squares Regression

A statistical method used to determine a line of best fit by minimizing the sum of squares of the distances of observed values from the predicted values.