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Briefly describe the three functions of the Federal Reserve.
Speculate
The action of investing in financial assets with high risk in the hope of achieving high returns.
Premium
An additional payment above the nominal or face value of a transaction, security, or insurance policy.
Option Contract
A contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a given date.
Forward Contract
A customized contract between two parties to buy or sell an asset at a specified future date for a price agreed upon today.
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