answersLogoWhite

0

(apex) a contract setting the price and date for a commodity purchase.

User Avatar

Anonymous

4y ago

What else can I help you with?

Continue Learning about Calculus

What statement best explains what a futures contract is?

A futures contract is a contract setting the price and date for a commodity purchase.


Which best explains what a futures contract does?

A futures contract is a standardized agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. It allows traders to hedge against price fluctuations or speculate on future price movements of commodities, currencies, or financial instruments. By locking in prices ahead of time, it provides certainty and can help manage risk in volatile markets.


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.


Which best explains what forward contract does?

A forward contract is a customized agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. It allows the parties to hedge against price fluctuations by locking in prices today, regardless of future market conditions. Unlike standardized futures contracts, forward contracts are typically traded over-the-counter, meaning they can be tailored to the specific needs of the parties involved. This provides flexibility, but also carries counterparty risk since they are not regulated exchanges.


Which of the following is the best definition of the term risk?

the probability and severity of loss or adverse impact from exposure to various hazards

Related Questions

What statement best explains what a futures contract is?

A futures contract is a contract setting the price and date for a commodity purchase.


What best explains what a future's contract is?

A futures contract is a contract setting the price and date for a commodity purchase.


What Best Explains What Futures Contract Is?

(apex) a contract setting the price and date for a commodity purchase.


Which of the following best explains why commodity futures contracts are transferable?

They can be bought and sold but the obligation in the contract remains a valid


Which of the following best explains how revenue is determined?

A contract to deliver a particular commodity to a buyer sometime in the future. Apexx J.Pichardo


What best explains the term social contract?

d


Which best explains what a futures contract does?

A futures contract is a standardized agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. It allows traders to hedge against price fluctuations or speculate on future price movements of commodities, currencies, or financial instruments. By locking in prices ahead of time, it provides certainty and can help manage risk in volatile markets.


What best explains what a forward contract is?

A contract to deliver a particular commodity to a buyer sometime in the future.


Which best explains the social contract?

The relationship between people and their government


Which of the following explains best explains external jihad?

A struggles for the defense of Islam


Which of the following best explains why the game of economics does not have a signal goal?

Evaluation


What event best explains why congress passed the contract labor law in 1864?

the civil war was being fought