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A Potential Disadvantage of Forward Contracts Versus Futures Contracts Is

question 22

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A potential disadvantage of forward contracts versus futures contracts is:


Definitions:

Paid Now

Paid now typically refers to payments or financial transactions that are settled immediately or on the current date.

Equal Value

A condition or state where two or more items, services, or amounts have the same worth or significance.

Due Payment

The amount of money that is scheduled to be paid at a certain date as part of a financial obligation.

Delay Payment

The act of postponing a payment until a later time, often resulting in additional fees or interest.

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