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AGEC 321 Exam 1 Questions With Accurate Answers...

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8 pages

Written in 2025/2026

Grade A+

Evergreenview

AGEC 321 EXAM 1 QUESTIONS AND 100% CORRECT ANSWERS .Exchanges exist to provide what? - ANSWERS-1. specific location to trade 2. specific time to trade 3. public knowledge of bids & offers 4. access to information .Where did the 1st futures exchange happen? - ANSWERS-18th century Japan .What was the need for the 1st exchanges? - ANSWERS-Landlords receiving a share of crops from their tenants Stored rice = bank account .The desire for liquidity (cash) led to wha...

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15 pages

Written in 2025/2026

Grade A+

IszackBd

AGEC 321 EXAM 1 QUESTIONS WITH CORRECT ANSWERS .What is the formula for calculating basis - ANSWERS-Basis = Cash - Futures Price .the financial performance of a futures contract is - ANSWERS-guaranteed by the exchange of the commodity .the differential between cash and futures prices is: - ANSWERS-basis and varies from geographic location .the total number of contracts outstanding at a given point is known as the - ANSWERS-open interest .what was the first c...

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5 pages

Written in 2025/2026

Grade A+

IszackBd

AGEC 321 EXAM 2 QUESTIONS AND 100% CORRECT ANSWERS .Basis = - ANSWERS-Cash price - futures price .When is futures price locked in? - ANSWERS-Once you sell the futures contract - it is no longer available .When is basis set? - ANSWERS-When you make the cash market transaction .Expected cash price = - ANSWERS-Futures price (locked in) + expected basis .4 Ways to track basis - ANSWERS-1. Daily 2. Weekly 3. Monthly 4. Within a day .What is the best wa...

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10 pages

Written in 2025/2026

Grade A+

IszackBd