Briefly Explain the Defenses Established by the Courts to Protect

question 21

Essay

Briefly explain the defenses established by the courts to protect against abuse of evidence from net worth,source and application of funds and percentage markup methods of proof.

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Definitions:

Forward Exchange Contract

A financial agreement to exchange a specified amount of one currency for another currency at a future date and at a predetermined exchange rate.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used as a financial instrument for hedging or speculation.

Option Contract

A contract which gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specified time.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.