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    Futures contract

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    I have to answer this question below in 350 words. I have been reading the chapter and don't fully understand this question:

    Define a futures contract and explain the process of daily resettlement with futures prices.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:50 pm ad1c9bdddf
    https://brainmass.com/business/business-philosophy/futures-contract-and-the-process-of-daily-settlement-251732

    Solution Preview

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    Problem: Define a futures contract and explain the process of daily resettlement with futures prices.

    Here's your solution:
    In a futures contract, the buyer of the contract agrees to buy the asset at a fixed price at some time in future. Future contracts are standardized contracts traded on an exchange. Futures can be for currency, commodities, interest rates etc. For example, we may buy a futures contract in oil. The futures contract would specify the quantity, price and the settlement date. ...

    Solution Summary

    The posting helps with a business philosophy problem. The solution explains a future contract and the process of daily settlement. Concepts discussed include currency, commodities, interest rates, buyers and contracts. The explanation is given in 376 words.

    $2.19

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