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    Question

    What is meant by a “zero-sum game” in the context of

    forward contracts?​
    A One party’s gain equals the other party’s loss Correct Answer Incorrect Answer
    B Both parties profit equally Correct Answer Incorrect Answer
    C No financial transaction occurs Correct Answer Incorrect Answer
    D The contract is settled without delivery Correct Answer Incorrect Answer
    E Both parties incur a loss Correct Answer Incorrect Answer

    Solution

    A zero-sum game is a situation in game theory where the only way to win is at someone else's expense

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