Reference no: EM132504180
-Explain what is meant by "marked to market."
-a) What are the primary motives for a hedger in the derivatives market?
-b) What are the primary motives for a speculator in the derivatives market?
-In general, do speculators increase the risk of futures markets? Explain.
-If an agricultural producer would like to lock in the price of his products when taking them to the
-market, should he go long or short in the futures contract?
-Why would a company want to enter into an interest rate swap?
-Go to the website for the Chicago Mercantile Exchange www.cmegroup.com and find the following
-information for the Coal (API4) FOB Richards Bay (ARGUS-McCloskey) futures contract. a) Product code
-b) Contract unit
-c) Price Quotation information