Electronics > EXAM > AGEC 321 Actual Exam 1 and Quizzes and answers 2022/2023 (All)

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AGEC 321 Actual Exam 1 and Quizzes and answers 2022/2023

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What is the formula for calculating basis Basis = Cash - Futures Price the financial performance of a futures contract is guaranteed by the exchange of the commodity the differential b ... etween cash and futures prices is: basis and varies from geographic location the total number of contracts outstanding at a given point is known as the open interest what was the first commodity to be traded in organized futures exchange soybeans Title of P/L Graph Sell Date Exchange Commodity Futures Price change in contract value formula delta = (P2 - P1) * Contract Size Net Margin Account Change formula NMAC = Ending Margin Account Balance - Initial Margin Account Balance - Additional Margin Deposit(s) hedging is: the use of the futures market as a temporary substitute for an intended transaction in the cash market which will occur at a later date open interest Opened contracts not offset with reversing trade long liquidating Sells a futures contract to offset a previous purchase of a futures contract short covering Buys a futures contract to offset the previous sale of a futures contract new seller New participant in futures market that sells a futures contract new buyer New participant in the futures market that buys a futures contract [Show More]

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