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What Do You Think Are the Advantages of Holding Futures

question 28

Essay

What do you think are the advantages of holding futures rather than the underlying commodity? What do you think are the disadvantages?


Definitions:

Depolarization Phase

The stage in the action potential of a cell in which the cell membrane's charge becomes more positive compared to its resting state.

Action Potential

A rapid rise and subsequent fall in voltage or membrane potential across a cellular membrane due to the flow of ions in and out of the neuron.

Repolarization Phase

A phase in the cardiac cycle where the heart muscle cells return to their resting state by repolarizing their membrane potentials.

Depolarization Phase

The process in which a cell's membrane potential becomes less negative, leading towards the threshold for an action potential.

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