Ben’s is able to maintain healthy margins on the sale of coffee beverages. However, Ben reads in the newspaper that cyclone season is coming up and this may threaten to destroy coffee plantations. He is worried that this will lead to an increase in the price of coffee...
As stated in the definition, the performance of a derivative is dependent on the underlying asset’s performance. Often this underlying asset is simply called as an “underlying”. This asset is traded in a market where both the buyers and the sellers mutually decide its price, and then the ...
Will move forward meaning? move forward To advance in position or progress. The player moved forward and kicked the ball toward the net. We've had some setbacks, but it's important that we keep moving forward with our original schedule in mind. 2. To cause or compel someone or something ...
Settlement on futures contracts is on a daily basis, while for the forward contract, it is on the maturity date. Futures contracts aremarked to market, meaning settlement of profit or loss is on a daily basis. Risk In the case of the futures contract, the risk factor is low, while the ...