Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The establlshment of a futures market in a commodity should not have a major impact on spot prices because o the futures market is illiquid.

image text in transcribed
The establlshment of a futures market in a commodity should not have a major impact on spot prices because o the futures market is illiquid. futures are a zero-sum game. the futures market is small relative to the spot market most futures contracts do not take delivery the futures market is large relative to the spot market

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

Analysis For Financial Management

Authors: Robert C Higgins

8th International Edition

0071257063, 9780071257060

More Books

Students also viewed these Finance questions