Because a futures contract deals with very large trading units, even a modest price change in the price of the underlying commodity can have a large impact on the market value of the contract.
Correct Answer:
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Q2: With futures contracts, the price at which
Q3: Which of the following characteristics apply to
Q4: Which of the following features are shared
Q5: The amount paid at the time a
Q6: The seller of a futures contract
A) has
Q7: Hedgers who buy futures contracts are protecting
Q8: The definition of commodity is broad enough
Q9: Futures contracts for various commodities have different
Q10: Speculators provide liquidity to the futures market.
Q11: The maximum loss on a futures contract
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