Economics of Money, Banking and Financial Markets, The, Business School Edition (5th Edition) (What's New in Economics)
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Chapter 14, Problem 3LO
To determine

The differences between forward contract and financial futures contract

Context Introduction:

Forward contracts − Customized contracts that take place between parties for selling or buying an asset in a future time at the preset price is called forward contract.

Financial future contract − The future contracts that are for selling or buying certificates of deposits, treasury bills, foreign currencies or other such specific financial instruments at a preset price and a future date specified are called financial future contracts.

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