Forward Contracts Are Much Easier to Unwind Than Futures Contracts

question 30

True/False

Forward contracts are much easier to unwind than futures contracts due to the standardization of the contracts.

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Definitions:

Displacement

In psychoanalytic theory, a defense mechanism where an individual redirects emotional impulses from a real object to a substitute object.

Reaction Formation

A defense mechanism where an individual unconsciously replaces an unacceptable or threatening impulse with its opposite.

Humanistic Perspective

A psychological approach that emphasizes the study of the whole person and the uniqueness of individual experience and potential.

Self Encourages Selfishness

The concept that prioritizing oneself over others can lead to selfish behaviors, often at the expense of collective well-being.