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Unit 3: Introduction to Forward Contracts




          6.   What are important terms used in trading forward contract? Explain.              Notes
          7.   List the major features of forward contracts.
          8.   Explain the main benefits and limitation of forward contracts.
          9.   Explain the statement: “Forwards are zero-sum games”.

          10.  Explain the various uses of forward contract with suitable examples.

          Answers: Self  Assessment

          1.   Forward                          2.   Standardised
          3.   Counter party risk               4.   Zero-sum-game
          5.   Zero                             6.   False

          7.   False                            8.   True
          9.   True                             10.  True

          3.7 Further Readings




           Books         Apte, P.G., International Financial Management, Tata McGraw-Hill Publishing
                         Baghri and Vora, Options and Futures, Tata McGraw Hill
                         Gupta S.L., Financial Derivatives, 2005, PHI

                         Patwari D. C and Anshul Bhargava, Options and Futures, Jaico Books.



          Online links   www.managementstudyguide.com
                         www.nse.org

                         www.sebi.gov.in
                         http://www.nseindia.com/content/ncfm/ncfm_modules.htm




























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