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Forwards and Futures
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Reference: DARDEN-F-1427-E
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Number of pages: 13
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Publication Date: Mar 10, 2008
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Source: Darden University of Virginia (USA)
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Type of Document: Technical Note
Description
This technical note introduces the basics of forward and futures contracts. It covers the very simplest contract on financial assets with no income and expands the discussion to cover contracts on financial assets with dividends, contracts on foreign currency and commodities. There is a discussion on the difference between forward/futures prices and the expected spot rate.