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
Please see the attachment for the solution.
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. ...
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.