Futures contract

a. involve the immediate exchange of bank deposits. b. involve the exchange of bank deposits as some specified future date. c. involve the immediate exchange of imports and exports. d. none of the above. 15. Most mutual funds are structured in two ways. The most common structure is a(n) _________ fund, from which shares can be redeemed at any

This can especially noticed in agricultural commodities where the weather plays a major role in affecting the fortunes of people involved in this industry. The futures market has evolved to neutralize such risks through a mechanism; namely hedging. The objectives of Commodity futures: - • Hedging with the objective of transferring risk related to the possession of physical assets through any adverse moments in price. Liquidity and Price discovery to ensure base minimum

Futures contract In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today (the futures price or the strike price) but with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange. The party agreeing to buy the underlying asset in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to sell the asset

Future contract #1 Ostrich meat 1. This is a future contract of 60,000 lbs. ostrich meat traded in $0.0001/lb. in Dec., Mar., Jul. and Sep. The seller has to deliver USDA frozen 75-100 pound Grade A ostrich carcasses. The daily Price cannot be $0.05/lb. above or below the previous day’s settlement price. 2. i) According to world – ostrich organization (http://www.world-ostrich.org/demand.htm), the current demand for ostrich meat is way far more than supply. Therefore, there will be a constantly

DERIVATIVE MARKETS FUTURES, FORWARDS, OPTIONS, SWAPS, CAPS AND FLOOR MARKETS Prepared by: Zagorskaya Ksenia 1. OVERVIEW OF DERIVATIVE MARKET Derivatives are financial instruments whose value is derived from the value of something else. They generally take the form of contracts under which the parties agree to payments between them based upon the value of an underlying asset or other data at a particular point in time. The main types of derivatives are futures, forwards, options and swaps

three months. Alternatively, the portfolio can be hedged against future possible outcome of the falling market. Stock index future contracts are commonly used to hedge market risk of a diversified, actively managed portfolio for a period of time and produce a positive return even in falling market. A fund manager, who believes that there is a possibility that the market is going to fall, can enter a short position in stock index future in order to hedge the portfolio. The portfolio outlined above comprises

of Futures Contracts” is research work done by Owais Javaid Qureshi, under my supervision, during March-April, 2012, submitted to the Department Of Business and Financial Studies, University Of Kashmir in partial fulfillment for the award of the Degree of Masters in Finance & Control _____________________ Dr.

Futures Trading for Beginners What makes futures contracts so attractive? Do you want to earn a stable income, but at the same time, be brave enough to take risks? Do you want to insure your assets and try your hand at trading on financial market? Do you have good business instinct? Are you interesed in world news? In this case, it is mandatory for you to know what is a futures contract. Futures contracts are unique invention, created to simplify the business life and make a high profit. Using futures

Currency Futures Futures contracts are designed to minimize the problems arising from default risk and to facilitate liquidity in secondary dealing. In the United States, the most important market for foreign currency futures is the International Money Market (IMM) of Chicago, a division of the Chicago Mercantile Exchange. The best way to understand these contracts is to compare them with forward transactions. Like forward contracts, currency futures contracts are, in principle, contracts to deliver

FORWARD AND FUTURES MARKETS MULTIPLE CHOICE TEST QUESTIONS 1. Which of the following is a false statement related to options on futures? a. options on futures are also known as futures options b. options on futures are also known as options on the underlying instrument c. options on futures is a derivative on a derivative d. options on futures are also known as commodity options e. all of the above statements are true related to options on futures 2. Which of the following contract terms is