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Issue:

Business

 

Written by:

Meta R

 

Date added:

September 23, 2012

 

Level:

 

Grade:

A

 

No of pages / words:

1 / 200

 

Was viewed:

7557 times

 

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Essay content:

Moveover the commodity futures investor is not charged interest on the difference between margin and the full contract value. Definition of future contracts If price moves are favourable, the producer realizes the greatest return with this marketing alternative. No premium charge is associated with futures market contracts...
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No premium charge is associated with futures market contracts. Disadvantages of Future Contracts Subject to margin calls Unable to take advantage of favourable price moves Net price is subject to Basis change Futures contracts are similar to Options. Both represent actions that occur in future. But Options are contract on the underlying futures contract where as futures are either to accept or deliver the actual physical commodity...
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