Basis
The relationship of the local cash market price and the futures market price refer to what?
What is: Basis
The first futures contracts were established in this city?
What is Chicago
Taking your crop or livestock to the market for the price of the day
What is Cash Sales
Wood
What is Lumber
Selling or buying a futures contract as a temporary substitute for selling or buying the commodity at a later date.
What is Hedging
The CME refers to what trading organization from 1874 that dealt primarily with butter, eggs, poultry, and other farm products?
What is Chicago Mercantile Exchange
They place the orders to buy and sell futures and options contracts for companies or individuals
What is Brokerage firms
Pork Bellies
What is Livestock and Meat
An agreement to buy or sell a commodity at a date in the future. Typically done through a brokerage frim.
What is a Futures Contract
Cash price for corn is $2.80, and the futures price is $3.00, what is the basis?
What is -$.20 under.
The CBOT was organized to promote commerce.
What is Chicago Board of Trade or Board of Trade of the City of Chicago
A person that tries to make money by buying and selling futures and options
What is Speculators
A negotiated contract now and delivered later
What is a Forward Contract
The nearby futures price is $68.00, and the cash price is $69.50. Basis would be?
What is: $1.50 over
What is the Grain Futures Act of 1922.
A person who is no longer needed to be physically present on the trading floor
What is an E-trader
Coffee, Sugar, Orange Juice
What is Food
The right but not obligation to buy or sell a futures contract at a specified price. You will pay a premium.
What is an Option on futures contract
Cash is $6.50 and Futures is $7.25. Basis would be
What is -$.75 under
KCBOT refers to what grain exchange
What is Kansas City Board of Trade
People who trade for themselves or the accounts they control, using different trading strategies.
What are Floor Traders
Oil, Natural gas, Electricity
What is Energy
To deliver a commodity and agree with the buyer to price it a t a later time.
What is a deferred pricing agreement.