Explain what is meant by marked to market

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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

Reference no: EM132504180

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