Which of the following are economic functions of futures markets? Flexibility in pricing products and inputs Information collection and dissemination Price discovery Transferring risk Coordinating economic activity to reduce marketing costs Market stability
Which of the following are economic functions of futures markets? Flexibility in pricing products and inputs Information collection and dissemination Price discovery Transferring risk Coordinating economic activity to reduce marketing costs Market stability
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which of the following are economic functions of futures markets?
Flexibility in pricing products and inputs
Information collection and dissemination
Price discovery
Transferring risk
Coordinating economic activity to reduce marketing costs
Market stability
Hedging is taking the opposite position in the futures market as in the cash market,
concurrently. This allows the producer to secure a certain price in the market.
True
False
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