Explain Why Some Futures Contracts Are Settled in Cash While

question 69

Essay

Explain why some futures contracts are settled in cash while others are not.Provide an example of each.

---

Definitions:

Standard Deviation

A metric that quantifies the degree to which values in a collection vary from the average value of the group.

IQR

The interquartile range, a measure of statistical variability between the 25th and 75th percentiles.

Range

The difference between the highest and lowest values in a dataset, providing a measure of the data's dispersion.

Standard Deviation

An indicator calculating the spread of data around the mean, achieved by the square root of the variance.