the

A jewellery company has used futures markets tc hedge the price of silver it will purchase over the next 5 years. Which of the following is true? 9 It is liable to experience liquidity problems if the price of silver rises dramatically It is liable to experience liquidity problems if the price of silver rises dramatically or falls dramatically It is liable to experience liquidity problems if the price of silver falls dramatically The operation of futures markets protects it from liquidity problems You sell one December futures contracts when the futures price is $1,010 per unit. Each contract is on 100 units and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price rises to $1,012 per unit. What is the balance of your margin account at the end of the day? $1,300 $3,700 9 $3,300 $2,200 Which of the following is NOT true 9 Forward contracts are traded on OTC markets, but futures contracts are not. Both forward and futures contracts are traded on exchanges. There are some credit risk involved in forward contracts trading. Futures contracts are traded on exchanges, but forward contracts are not