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What is speculative carry generation?
what is speculative carry generation?
What major commodities does Amtrak carry?
Amtrak deals only in passenger service.
What was the crash and carry policy?
The "crash and carry" policy was a trading strategy used in financial markets, particularly in relation to futures contracts. It involved simultaneously buying an asset and selling a related futures contract to capitalize on price discrepancies. Traders would "crash" the price of the asset by selling futures, while "carrying" the position until the prices converged, allowing them to profit from the arbitrage opportunity. This approach aimed to exploit inefficiencies in pricing between the spot and futures markets.
Explain the three motives for holding money?
The Transaction MotiveThe Precautionary MotiveThe Speculative MotiveThe Transaction MotivePeople will keep certain stock of money all the time to enable them to carry out their transactions.The Precautionary MotiveThe people also desire to hold some additional cash balances against unforeseen circumstances.The Speculative MotiveThe Speculative Motive implies the desire on the part of the public to keep certain amount of cash in reserve to make speculative gains out of the purchase and sale of securities.
What are the various Principles of forward and future pricing?
The principles of forward and futures pricing are based on concepts like arbitrage, cost of carry, and market expectations. Arbitrage ensures that there are no price discrepancies between the spot and futures markets, while the cost of carry accounts for storage, interest, and other holding costs associated with the underlying asset. Additionally, futures prices reflect market expectations regarding future supply and demand conditions. These principles help in determining fair pricing for contracts based on the underlying asset's characteristics and market dynamics.
What are Phoenician exports?
They initially traded their own produce of timber, gems, metals, cites and foodstuffs, then expanded into carry trade - shipping commodities between other producers and markets.
What do commodities brokers do?
Commodity Brokers is a person or group of people that carry out orders to buy and sell Commodity Contracts for clients in exchange for Commission. An individual who does this for themselves is known as a Trader.
What are derivative sales?
Derivative sales refer to the selling of financial instruments whose value is derived from the performance of an underlying asset, such as stocks, bonds, commodities, or interest rates. These instruments include options, futures, and swaps, allowing investors to hedge risks or speculate on price movements without directly owning the underlying asset. Derivative sales can enhance liquidity and provide opportunities for profit, but they also carry significant risks due to their complexity and potential for high leverage.
What is the approximate heart rate for children?
fetuses have been known to carry an extremely rapid heartbeat.
What is the difference between shipping and drop shipping?
Hi Dear, Shipping is a method that delivers commodities from suppliers to end-customers without any stopping at warehouses. Dropshipping is a business that allows shopkeepers no need to carry inventories as well, and suppliers and manufacturers carry out the order fulfillment.
Which best explains what a forward contract does?
A forward contract is a financial agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. It allows the buyer to lock in prices and hedge against price fluctuations, while the seller can secure future revenue. Unlike standardized futures contracts, forward contracts are customizable and traded over-the-counter, which means they carry counterparty risk. Overall, they are used to manage risk in various markets, including commodities, currencies, and financial instruments.
What is the difference between pure and speculative risk?
1. Pure Risk situations are those where there is a possibility of loss or no loss. There is no gain to the individual or the organization. WHERE AS Speculative Risks are those where there is a possibility of gain as well as loss. The element of gain is inherent or structured in such a situation. 2. Pure risks are generally insurable while the speculative ones are not. 3. The conceptual framework of the risk pooling can be applied to the pure risks, while in most of the cases of speculative risks where it is not possible. However, there may be some situation where the law of mathematical expectation might be useful. 4. Speculative risk carry some inherent advantages ti the economy or the society at large while pure risks like uninsured catastrophes may be highly damaging. 5. In pure risk, for example - a car meet with an accident or it may not meet with an accident. If the insurance policy is bought for the purpose, then if accident does not occur, there is no gain to the insured. Contrarily, if the accident occurs, the insurance company will indemnify the loss. In speculative risk, for example - if you invest in the stock market, you may either gain or lose on stocks.
