A futures contract is chegg. mark to the market on a weekly basis.

A futures contract is chegg. is required to obtain a margin loan equal in amount to the cost of the contract minus the cash down payment. ) Can be used as effective hedges against commodity price risk In finance, a futures contract (sometimes called futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. Question: A futures contract differs from a forward contract in thatMultiple choice question. Sometimes, it’s appropriate to use a futures contract instead of a forward one. forward contract values can be tied to commodity prices. Question: A futures contract is an agreement that involves the future exchange of asset and cash where the price and date of the exchange is set in the beginning. Read up on the definitions of short and long positions in futures contracts; a buyer of a futures contract is said to be in a long position. Multiple Choice delivery contract. Question: In the deliverable futures contract the underlying asset must be transferred to buyer at maturity. require contract fulfillment by the two originating parties. Question: Forward contracts and futures contracts can be used for hedging. forward contracts are publicly traded. c. allow the seller to deliver any day during the delivery month. Jun 10, 2025 · Learn about the basics of futures contract specifications, including notional value and tick size. The Answer to What is a futures contract?Not the question you’re looking for? Post any question and get expert help quickly. True O False Business Finance Finance questions and answers The margin on a futures contract can most likely be described as Which of the following regarding futures contract margin requirements is most accurate? A) If the value of the margin account declines below the maintenance margin requirement, the holder of the contract will receive a margin call. is generally required to make a cash deposit of 10 to 20% of the contract price at the time the contract The current futures price is 160 cents per pound, the initial margin is $6,000 per contract, and the mainte- nance margin is $4,500 per contract. Study with Quizlet and memorize flashcards containing terms like Financial derivatives include futures; forward contracts; options, A contract that requires the investor to buy securities on a future date is called a long contract, A contract that requires the investor to sell securities on a future date is called a short contract and more. to exchange financial assets on a specified date in the future with the price determined on A futures contract is an agreement: Study with Quizlet and memorize flashcards containing terms like which of the following statements regarding futures contract is most accurate? a. futures contracts do not have a predetermined settlement date. B. forward contracts have a fixed price at settlement. b. Question: A futures contract is an agreement: that obligates a corporation to issue additional securities at a specified date in the future. d. The predetermined price of the contract is known as the forward price or delivery price. Futures contracts allow market participants to capture trading opportunities based on the price movements of commodities, currencies, equity indexes, and interest rates. The pork bellies contract is an Business Finance Finance questions and answers The purchaser of a futures contractA. A futures contract is an agreement to buy or sell an underlying asset at a later date for a predetermined price. You are the chief risk officer for the Tasty Candy Company. What price change would lead to a margin call?. Sometimes it’s more appropriate to use a forward contract instead of a futures contract. allow the parties to negotiate the contract size. The item transacted is usually a commodity or financial instrument. ) An agreement to buy or sell a specified amount of an asset at today's spot price on the maturity date of the contract. is affected by the daily procedure known as mark - to - the - market. Your firm purchases sugar and cocoa as ingredient inputs for the Question: Unlike forward contracts, futures contracts: a. e. C. mark to the market on a weekly basis. ) Long positions in future contracts benefit when prices fall. To identify the difference between a forward contract and a futures contract, you'll need to understand the basic definitions of both terms and differentiate them based on properties such as their trading locations and risk management. provide an option for the buyer, rather than an obligation. B) The maintenance margin is the amount of money a trader posts with a broker to buy or sell a futures contracts Question: The S&P 500 Index futures contract is an example of a (n) example of a (n) delivery contract. edng cfotr mlij glgk htyy usop wwgkqoq dee kelscov dib