What economic functions do forward and futures markets serve

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Reference no: EM13923443

• What are the historical differences in the way forward and futures contracts are structured and traded?

• How are the margin accounts on a futures contract adjusted for daily changes in market conditions?

• How can an investor use forward and futures contracts to hedge an existing risk exposure?

• What is a hedge ratio, and how should it be calculated?

• What economic functions do the forward and futures markets serve?

• How are forward and futures contracts valued after origination?

• What is the relationship between futures contract prices and the current and expected spot price for the underlying commodity or security?

Reference no: EM13923443

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