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Brian Was Playing a Game of Three Truths and a Lie

question 35

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Brian was playing a game of three truths and a lie with some of his friends.The goal of the group is to identify the lie.Brian observed that the bigger the lie,the more the person would scratch his/her face.He thought that if he plotted amount of scratching by severity of lie that there would be a relation.Brian is thinking of what type of study.


Definitions:

Forward Rate

The exchange rate specified in a forward exchange contract.

Premium

An amount paid for an insurance policy or an amount paid above the face value of a bond.

Cash Flow Hedge

A hedge of the exposure to the variability in cash flows that is attributable to a particular risk that is associated with all, or some component of, a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.

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