finance

According to a recent WSJ article, CME group and Nasdaq plan to launch a new type of futures contract in 2021 - water futures. According to the article, "it will allow farmers, speculators and others to wager on the price of water. The market will be the first of its kind, its creators say, putting water on the board for investors alongside other raw materials like crude oil, soybeans and copper." What do you think about this new futures contract overall? In your response, briefly discuss at least one benefit you see as a risk management tool for this new futures contract, and at least one obstacle you see for the futures contract to be successfully traded and settled in the exchange. 2