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QUESTION 7 Forward and futures markets provide insurance or hedging against different types
of risk. True O False
Solution
False, As Forward and future market both gives hedgeing mainly against price fluctuation risk or
interest rate risk but still are risk associated to them, Like in Forward contract we have default
risk

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QUESTION 7 Forward and futures markets provide insurance or hedging a.pdf

  • 1. QUESTION 7 Forward and futures markets provide insurance or hedging against different types of risk. True O False Solution False, As Forward and future market both gives hedgeing mainly against price fluctuation risk or interest rate risk but still are risk associated to them, Like in Forward contract we have default risk