Purchase Solution

Forward contracts

Not what you're looking for?

Ask Custom Question

How do forward contracts move a market towards completeness? Give a real life example from the corporate world or the financial markets.

Please incorporate 2 references to support answer.

Purchase this Solution

Solution Summary

This solution discusses forward contracts and the functions that they perform, their benefits, and their limitations. An example is given to support this 319 words including references.

Solution Preview

Forward contract is a part of the financial market. As per Sjsu, "A forward contract involved a commitment to trade a specified item at a specified price at a future date." Thus, a forward contract is an agreement to sell or buy a fixed asset at a particular price at some specified future date. Forward contract is a part of derivative market and helps make it more efficient and complete.

They perform the following functions:

- Market Intermediation
- Reducing Information ...

Purchase this Solution


Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media