Describe a currency future and contrast it with an interest-rate future. What is a stock-index future, and how can it be used by investors?
Answer to relevant QuestionsWhat are four common investment goals? Discuss how stock-index futures can be used for speculation and for hedging. What advantages are there to speculating with stock-index futures rather than specific issues of common stock? List and briefly define the 5 essential parts of a commodities contract. Which parts have a direct bearing on the price behavior of the contract? Josh Rink considers himself a shrewd commodities investor. Not long ago he bought one July cotton contract at $0.54 a pound and he recently sold it at $0.58 a pound. How much profit did he make? What was his return on ...You were just notified that you will receive $100,000 in 2 months from the estate of a deceased relative. You want to invest this money in safe, interest-bearing instruments, so you decide to purchase 5-year Treasury notes. ...
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