Examlex
Discuss what it means for a futures contract to be marked to market.If you provide an example,assume that the hedger has purchased a 5,000 bushel wheat contract at a price of $3.90 per bushel.
Market Price
The ongoing rate at which an asset or service is offered for buying or selling in a certain market.
Short Run
A period in economics during which at least one input or resource is fixed, limiting immediate capacity adjustments.
Zero Economic Profit
A condition in which a firm's total revenue equals its total costs, implying normal profit but no excess profit over what is considered normal in the industry.
Long Run
A period in economics where all factors of production and costs are variable, and firms can adjust all inputs as needed.
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