Description of Transaction

Type of Market

Sonia takes a mortgage loan from a bank to purchase property.

Description of Transaction

Type of Market

An oil trader buys contracts at the New York Mercantile Exchange, and he locks in the current futures price of heating oil for delivery in the winter season.

Description of Transaction

Type of Market

Abbey allocates $80\%$ of her portfolio for investments in short$-$term US Treasury bills.

Description of Transaction

Type of Market

The state of California issues new bonds to the public with an investment bank serving as the underwriter to raise capital.

A corn processor in Nebraska has decided to purchase a futures contract for corn. The contract will increase in value if the price of corn rises, ttereby ffsetting the processors' increased costs$/$decreased net income. In this example, the corn processor is