Question
Which of the following is not an objective of a forward
contract?Solution
A forward contract is an agreement between two parties to trade a specific quantity of an asset for a pre-specified price at a specific date in the future. The primary objective of forward contracts isĀ to manage the risksĀ associated with fluctuating prices of the underlying asset. The objective is not to make profit but to minimise loss.
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Section 19 of PMLA deals with:Ā
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