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Futures contracts have daily settlement of gains and losses.
It equals the spot price compounded at the risk-free rate.
It resets the contract value to zero, reducing counterparty credit risk.
Differences arise from cash flow patterns and margin requirements.
It converges to the spot price.
Interest rate futures provide a standardized alternative to FRAs.
They are approximately the same at contract maturity.
It leads to futures profits reinvested at rising rates.
It is given by (100 - yield).
It ensures no riskless profit can be made through arbitrage.