Prove the initial value of a forward contract at the beginning of the contract
Question # 00594834
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Updated on: 09/26/2017 01:25 AM Due on: 09/26/2017
1.Prove the initial value of a forward contract at the beginning of the contract (where t = 0)?
2.Explain why futures contracts may have less "risk" than forward contracts. What features and mechanisms ensure that this is the case?
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Solution: Prove the initial value of a forward contract at the beginning of the contract