As of June 2012, U.S. commercial banks held over $42 trillion of forward contracts that were listed for trading on the Chicago Mercantile exchange.
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Q1: A perfect hedge, or perfect immunization, seldom
Q4: Delivery of the underlying asset almost always
Q6: Derivative contracts allow an FI to manage
Q7: Forward contracts are marked-to-market on a daily
Q9: In a forward contract agreement, the quantity
Q14: Forward contracts are individually negotiated and, therefore,
Q16: Commercial banks, investment banks, and broker-dealers are
Q16: As of June 2012, commercial banks held
Q19: Federal regulations in the U.S.allow derivatives to
Q20: A forward contract specifies immediate delivery for
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