EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
bartleby

Videos

Question
Book Icon
Chapter 22, Problem 1PS
Summary Introduction

To explain: In details that why there is no availability for Cement Industry in future markets.

Introduction: Future market is a contract to acquire or advertise of the commodities for the future date at a predetermined price.

Expert Solution & Answer
Check Mark

Answer to Problem 1PS

The future marketing of cement has no scope because it cannot be possible to store it for the long term as well as its prices are fixed and knowable.

Explanation of Solution

When the purchasing and selling of commodities are done on a future date at a predetermined price this deal is known as future marketing. Cement has no future market because it cannot be stored for the longest time and required some concern otherwise it will be set and become worthless. Its prices are also set and easily knowable. Its hedging value is also less as well as demand is tentative.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Why are interest rates the least important factor that affects options contracts?
What’s the difference between spot markets and futures markets?
What advantage does hedging using money market rates have over using interest rate futures?
Knowledge Booster
Background pattern image
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Investing For Beginners (Stock Market); Author: Daniel Pronk;https://www.youtube.com/watch?v=6Jkdpgc407M;License: Standard Youtube License