How Is the Fair Value of a Forward Contract Determined

question 5

Essay

How is the fair value of a Forward Contract determined by U.S. GAAP?

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Definitions:

Kinesthesis

Kinesthesis, or kinesthesia, is the sense that detects bodily position, weight, or movement of the muscles, tendons, and joints, enabling our bodies to move freely and with coordination.

Top-Down Processing

A cognitive process that starts with a higher-level understanding or expectation to interpret lower-level information in perception or cognition.

Gate-Control Theory

The theory that the spinal cord contains a neurological “gate” that blocks pain signals or allows them to pass on to the brain. The “gate” is opened by the activity of pain signals traveling up small nerve fibers and is closed by activity in larger fibers or by information coming from the brain.

Spinal Cord

The cylindrical bundle of nerve fibers and associated tissue that is enclosed in the spine and connects nearly all parts of the body to the brain.