Describe futures contracts and forward contracts and list two differences between them. (10 points) Futures contracts: Forward contracts: Difference: Difference:

See Explanation Below

Step-by-step explanation:

The concept of forward contract is such that it is a form of accordance that exist between two parties (rhey buyer and seller) on a particular transaction which is to be carried out or executed at a later or future date.

While

The concept of futures contract is such a contract that exist between two parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price, at a specified date in future.

The differences between them are

1. Futures contracts are of high standard whereas the terms of each forward contract can be negotiated.

2 Futures are traded on an exchange whereas forwards are traded over-the-counter.

set each factor equal to 0

4x-3 = 0

2x-1 = 0

solve for x.

4x-3=0

4x=3

x= 3/4

solve for x. 

2x-1= 0

2x= 1

x= 1/2

eventually after a few more steps, your answer should be 1/2 is less than or equal to x and 3/4 is greater than or equal to x

, and

for

step-by-step explanation:

we can analyze the pattern at which the terms increase. let us denote , , , so that we can call

note the following:

the pattern: to get the next term value, we just add the next term number (e.g. 1st, 2nd, to the previous term value (term values are the given numbers in the question, 1, 3, 6, 10, 15,

from , to get to , we add

from , to get to , we add

etc.

we need to form a recursive formula, a formula that has the next term as a function of the previous term. so a possible recursive formula can be

, and for