The nearby futures market price closed at

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Study for the FFA Farm Business Management Contest Exam. Prepare with versatile practice questions, flashcards, and in-depth explanations. Boost your readiness for success!

Multiple Choice

The nearby futures market price closed at

Explanation:
The nearby futures price is the front-month contract's price—the one closest to delivery—and “closed at” refers to the settlement price published at the end of the trading day. This settlement price is the value used to mark positions to market and to set daily gains or losses for hedgers and traders. In this context, the front-month contract settled at 4.00, so that is the price you would use as the daily close for the nearby futures market. The other numbers would correspond to intraday highs or lows or to prices of contracts further from delivery, not the front-month settlement used for daily accounting.

The nearby futures price is the front-month contract's price—the one closest to delivery—and “closed at” refers to the settlement price published at the end of the trading day. This settlement price is the value used to mark positions to market and to set daily gains or losses for hedgers and traders.

In this context, the front-month contract settled at 4.00, so that is the price you would use as the daily close for the nearby futures market. The other numbers would correspond to intraday highs or lows or to prices of contracts further from delivery, not the front-month settlement used for daily accounting.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy