Jacques Has a Big Wrestling Match Coming Up, but He

question 165

Short Answer

Jacques has a big wrestling match coming up, but he fears that he will lose. The week before the match, he claims that he is "really busy with other studies," and does not practice at all. Even though he may not realize he is doing this, he is setting himself up so that he will have an "excuse" in case he loses the match. Jacques is apparently engaging in ________________.

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Definitions:

Forward Contract

A non-standardized agreement to buy or sell an asset at a future date for a price agreed upon today.

Daily Resettlement

The process in futures trading where the gains or losses of the day are calculated, and accounts are adjusted accordingly to reflect the market value.

Forward Contract

A bespoke contract that allows two parties to trade an asset at a fixed price on a designated date in the future.

Cereal Company

A business entity that specializes in the production and marketing of cereal and grain-based food products.