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Why Must the Spot Price Equal the Futures Price on the Settlement

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Why must the spot price equal the futures price on the settlement date?


Definitions:

Intragroup Conflict

Conflict that occurs within a group, often arising from differences in viewpoints, ideas, or personalities, which can impact group dynamics and outcomes.

Intraorganizational Negotiations

The process of bargaining and making agreements within the same organization, often involving different departments or groups.

Consensus

A general agreement or the attainment of a common understanding by all parties involved.

Win-Lose Strategy

A competitive strategy where one party's gain is perceived to be at the other’s expense, common in zero-sum situations.

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