Give an Overview of Three of the Financial Futures Contracts

question 45

Essay

Give an overview of three of the financial futures contracts traded on the ASX.In your answer, discuss the features of the contracts you have selected and explain how the contracts may be used by both speculators and hedgers.

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Definitions:

Direct Labour-hours

The total number of hours worked by employees directly involved in the production process.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated costs and activity levels.

Direct Labour Hour

Direct labour hour is a measure of the amount of time workers spend on direct production activities, directly involved in manufacturing goods or providing services.

Manufacturing Overhead

Manufacturing expenses not directly linked to individual product units, encompassing indirect materials and labor.