• Among the four different economic functions that Metcalf discussed in his article, which one do you think is the most important economic function as an individual investor? Is your answer different if you are an investor for your firm? Explain.
• Compare and contrast the economic functions of pricing between the futures markets and the forward markets.
• Explain why an investor might take an illiquid position in a forward contract rather than using an exchange-traded futures contract.

Ref: The Four Major Economic Functions of Futures Commodity Markets (zacks.com)

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1 The most important economic function for an individual investor can vary depending on their investment goals risk tolerance and investment strategy However one of the key functions that individual i... View the full answer