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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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A risk manager is evaluating the choice between purchasing a futures contract on an exchange and acquiring a forward contract from a counterparty. Both the futures and forward contracts have identical maturity and delivery terms. In a scenario where arbitrage opportunities do not exist and there is an expectation of rising interest rates, what could be a reasonable singular factor that would result in the futures price being lower than the forward price?

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