Question: Short-answer questions: a. What was the primary factor that contributed to the dramatic growth in the futures trading over the last 30 years? b. What

Short-answer questions:

a. What was the primary factor that contributed to the dramatic growth in the futures trading over the last 30 years?

b. What is a hedge called in which the asset underlying the futures contract is not the same as the asset being hedged?

c. A farmer who hedged his expected sale of 7,000 bushels in early September with CBT wheat futures contracts would be subject to what types of hedging risks?

d. Who ensures that the price on an expiring futures contract is equal or approximately equal to its spot price?

e. What is the number of futures contracts outstanding at a given point in time called?

f. How does a futures market provide continuous trading without market makers or specialists?

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