Differences between forward and futures contracts

Assignment Help Project Management

Reference no: EM131278634

1. On April 1, the spot price of the British pound was $1.86 and the price of the June futures contract was $1.85. During April the pound appreciated, so that by May 1 it was selling for $1.91. What do you think happened to the price of the June pound futures contract during April? Explain.

2. What are the basic differences between forward and futures contracts? Between futures and options contracts?

3. A forward market already existed, so why was it necessary to establish currency futures and currency options contracts?

Reference no: EM131278634

Questions Cloud

What is carriers break even 90 day spot price : What is Carrier's break-even 90-day spot price on the option contracts? On the futures contracts?- Would you recommend Carrier hedge with the futures contracts or the options contracts? Why?

Why do physicians still recite the hippocratic oath : What are the differences among ethics, morals, etiquette (values) and laws? Give examples. What factors influence the ethical decision-making process? Give examples. Why do physicians still recite the Hippocratic Oath?

Find a random number generator : Find a random number generator and create simulated data for not more than 25 participants (test subjects) in the study using the ranges of values for the variables you established above.

Confidence interval for the average overhaul : You are estimating the cost of engine overhauls. A sample of 99 repairs showed an average overhaul of 285 hours with a standard deviation of 60 hours. Calculate a 95% confidence interval for the average overhaul. (Carry intermediate calculations to t..

Differences between forward and futures contracts : What are the basic differences between forward and futures contracts? Between futures and options contracts?- A forward market already existed, so why was it necessary to establish currency futures and currency options contracts?

Estimate values of the x and y components of the force : Assuming frictionless, incompressible, one-dimensional flow of water through the horizontal tee connection sketched in Fig. P5.60, estimate values of the x and y components of the force exerted by the tee on the water. Each pipe has an inside diam..

What estate tax planning techniques should they consider : What documents do you need to review? What estate planning documents will they need? What's their current estate tax liability? What estate tax planning techniques should they consider?

What are the implications for its plans for growth : How would you describe the departmentalization and the organizational structure at graeter's? do you think graeter's is centralized or decentralized. and what are the implications for its plans for growth?

How should issues like this be addressed in the future : Was the hospital right in the way they handled this situation and what were the economic issues relating to this case?

User Account

All Pages