The pure expectations hypothesis suggests futures prices serve as unbiased forecasts of future spot prices.
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Q6: Like future contracts, all forward contracts are
Q7: Some forward contracts, particularly in the foreign
Q8: Margin accounts are adjusted, or marked to
Q9: Interest rate parity is a key concept
Q10: The number of future contracts needed to
Q12: An investor in a hedge position is
Q13: Because futures contracts are "marked-to-market" daily, the
Q14: The settlement price is set by the
Q15: The basis (Bt,T) at time t between
Q16: Forward contracts are individually designed agreements and
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