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How Is the Fair Value of a Forward Contract Determined

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How is the fair value of a Forward Contract determined under SFAS 133?


Definitions:

Shoplifter

An individual who steals merchandise from a retail establishment.

Nash Equilibrium

A concept in game theory where no player can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.

Maximum Profit

The highest level of profit that can be generated from operations under given conditions and constraints.

Pricing High

Setting the price of a product or service significantly above the cost of production or acquisition to achieve higher margins.

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