In what ways do futures contracts differ from forward contracts?
What will be an ideal response?
Futures contracts are traded on exchanges. Futures contracts typically specify a quantity of the underlying asset to be delivered but do not fix what the price will be on the settlement date when the asset is delivered. Futures contracts are standardized in terms of the quantity of the underlying asset to be delivered and the settlement dates for the available contracts.
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Differentiate between a solvent bank and an insolvent bank. Which of the two is likely to have a greater stockholders' equity?
What will be an ideal response?
A decrease in the level of cyclical unemployment will shift the long-run Phillips curve
Indicate whether the statement is true or false
Virtual Currency Unit 3 (VCU3) poses a __________ risk to nations in which is it used because ___________________________
a. Low; it can be spent only in virtual worlds. b. Low; when converted into legal tender, it has no effect on a nation's M2 money supply or monetary base. c. Low; it does not have the potential to raise a nation's price level or threaten the nation's payment system. d. All of the above are true.
The study of economics arises due to
A) money. B) scarcity. C) greed. D) resources.