Enter Title

Basis

100

The relationship of the local cash market price and the futures market price refer to what? 

What is: Basis 

200

Basis is calculated by: 

What is: Local cash market price minus the futures market price. 

300

Cash price for corn is $2.80, and the futures price is $3.00, what is the basis?

What is -$.20 under.

400

The nearby futures price is $68.00, and the cash price is $69.50. Basis would be? 

What is: $1.50 over

500

Cash is $6.50 and Futures is $7.25. Basis would be

What is -$.75 under

Evolution & History

100

The first futures contracts were established in this city?

What is Chicago

200

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

300

The CBOT was organized to promote commerce. 

What is Chicago Board of Trade or Board of Trade of the City of Chicago

400

_________ was the first federal law regulating futures trading? It allowed the government some control over the exchanges by requiring them to be licensed and to prevent price manipulation by members. 

What is the Grain Futures Act of 1922. 

500

KCBOT refers to what grain exchange 

What is Kansas City Board of Trade

Marketing Terminology

100

Taking your crop or livestock to the market for the price of the day

What is Cash Sales

200

They place the orders to buy and sell futures and options contracts for companies or individuals

What is Brokerage firms

300

A person that tries to make money by buying and selling futures and options

What is Speculators

400

A person who is no longer needed to be physically present on the trading floor

What is an E-trader

500

People who trade for themselves or the accounts they control, using different trading strategies. 

What are Floor Traders

Commodity Categories

100

Wood

What is Lumber

200

Pork Bellies

What is Livestock and Meat

300

Siver and Gold

What is Metals

400

Coffee, Sugar, Orange Juice

What is Food 

500

Oil, Natural gas, Electricity

What is Energy

Terms & Contracts

100

Selling or buying a futures contract as a temporary substitute for selling or buying the commodity at a later date. 

What is Hedging

200

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

300

A negotiated contract now and delivered later

What is a Forward Contract

400

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

500

To deliver a commodity and agree with the buyer to price it a t a later time. 

What is a deferred pricing agreement.