Explain Why a Forward Contract May Actually Carry More Risk

question 61

Essay

Explain why a forward contract may actually carry more risk than a futures contract.

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Definitions:

Agreeableness

A personality trait that reflects the extent to which a person is cooperative, polite, friendly, and flexible versus cold, contentious, and confrontational.

Intellectual Openness

A willingness to consider new ideas, engage in critical thinking, and adopt novel approaches in learning and problem-solving.

Curiosity

A strong desire to know or learn something, fueling exploration and inquiry.

Originality

The quality of being novel or unique, especially in the context of creativity or inventiveness.