CH 10 notes - not matter what the price is later on. Future...

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CH 10 Derivative security – agreement to exchange security in a set price and set time. Spot contract – an agreement to buy and sell the asset at time 0 Forward contract – contract to buy and sell assets at a predetermined or fixed price. Does
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Unformatted text preview: not matter what the price is later on. Future contract – contract to buy and sell assets at variable price determined by the market. It has less risk. Options Swaps...
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This note was uploaded on 09/08/2010 for the course BUS 171A at San Jose State.

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