Define "Zero-Sum" Situation

question 11

Essay

Define "zero-sum" situation.

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Definitions:

Home Currency

The currency in which a company primarily operates or the currency of the country where the company is headquartered.

Forward Contract

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the contract's inception.

Settlement Date

The date on which a trade (purchase or sale of securities) is finalized, and the buyer must make payment while the seller delivers the securities.

Zero Sum Game

A situation in finance or economics where each participant's gain or loss is exactly balanced by the losses or gains of the other participants.