What is the difference between physical commodities and financial futures? What are their similarities?
Answer to relevant QuestionsWhat should an investor establish before developing and executing an investment program? Briefly describe each of the seven steps involved in investing. 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? Explain how margin trading is conducted in the futures market. a. What is the difference between an initial deposit and a maintenance deposit? b. Are investors ever required to put up additional margin? If so, when? On the basis of the information provided, indicate how much profit or loss you would make in each of the futures transactions listed below. a. You buy 3 yen contracts at a quote of 1.0180 and sell them a few months later at ...Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 248. Her analysis suggests that July oats should be trading at about 240 in a couple ...
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