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- Is the “forward price” the same thing as the “value of the forward contract” Explain.
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- Is variable consideration included in the calculation of a contract’s transaction price? If so, how is the amount of variable consideration estimated?How does a futures contract differ from a forward contract?Explain how purchase commitments are recorded for the lower of contract price or market price.
- What is the relation between the expected rate of return and the required rate of return as they pertain to the fair market price and the current market price of a security?1. What is the difference between a spot and a forward rate? If the forward rate is not at parity during the outset of the contract, which theory of term structures does this violate?''The major difference between future and option arises from the different obligations of buyers and sellers''. Explain
