Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A future contract with $200 delivery price is sold for $185 yesterday, and today its price changes to $188. The change in the future's price

A future contract with $200 delivery price is sold for $185 yesterday, and today its price changes to $188. The change in the future's price will require the buyer of this future contract to pay $3 difference in price to the seller of the future contract. This is an example of _____.

a. obligation in the future's contract

b. long position in the future's contract

c. exercise price of the future's contract

d. marketing to market in the future's contract

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Changing Geography Of Banking And Finance

Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro

1st Edition

1441947205, 978-1441947208

More Books

Students also viewed these Finance questions