Discuss What It Means for a Futures Contract to Be

question 46

Essay

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.

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Definitions:

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Economic Generalization

Broad principles or concepts in economics that apply across a range of scenarios and are used to simplify the analysis of economic behaviors and trends.

Confidence

The degree of optimism or pessimism that consumers and businesses feel about the overall state of the economy and their personal financial situations, influencing their spending and investment decisions.