Why Do Firms Prefer Forward Contracts Rather Than the Cash-Can-Carry

question 8

Essay

Why do firms prefer forward contracts rather than the cash-can-carry strategy?

---

Definitions:

Student Loan Interest

The interest paid on a loan taken out to fund educational expenses, potentially deductible under certain conditions from your taxable income.

Modified AGI

An adjusted gross income figure used for specific tax calculations, modified by adding back certain deductions and exclusions.

Self-employment Tax

The tax self-employed individuals must pay to cover their Social Security and Medicare obligations.

Gross Earnings

The total amount of money an individual earns before any deductions or taxes are applied.