首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Futures are used for three purposes; hedging, speculating and arbitraging. This passage is only concerned with hedging, but it s
Futures are used for three purposes; hedging, speculating and arbitraging. This passage is only concerned with hedging, but it s
admin
2012-01-26
29
问题
Futures are used for three purposes; hedging, speculating and arbitraging. This passage is only concerned with hedging, but it should be noted that speculators and arbitrageurs play a particularly important role in the market. It is largely the speculators who take on the risks that the hedgers seek to shed, while the arbitrageurs, by ensuring that futures prices constantly stay in line with other markets, give both hedgers and speculators the confidence that they are doing their deals at the right price.
The volume of deals for arbitrage and speculation purposes is much higher than that for hedging purposes. This is similar to the foreign exchange markets, where it has been estimated that, the foreign exchange business needed in any one year for commerce and tourism is all done by 11 a.m. on 2, January, while the rest of the year is taken up with speculating and arbitraging.
However, the purpose of the futures markets and what makes them different from a simple gambling ring in the eyes of the law, is to provide a service to those commercial enterprises which seek to hedge their risks. It is their money which drives much larger volume of other transactions and not the other way round.
You might have expected, as is certainly the case in most other financial markets, that big institutions would be more ready and able than small individuals to shoulder the risks involved in dealing speculatively in futures. However, futures markets are exceptional in this regard. In contrast to other financial markets, which are dominated by big institutions, or at least by fairly sizeable firms, the lifeblood of a successful futures market is its "locals"—independent firms of only a few individuals trading for their own account. It is these quick-witted, aggressive and generally rather blunt-spoken individuals, viewed usually by outsiders with the utmost mistrust, who take the risks that others use the futures market to shed, and provide the markets with the liquidity without which they would he dead. The single reason why Chicago took off as a financial futures market where others lagged behind is that the CBOT and IMM already had a large pool of locals ready to turn their hand from soya beans to long bonds and provide the new contracts with risk-taking capacity.
The best title for the passage can he ______.
选项
A、What Are Futures Used for
B、Who Are the Arbitrageurs, Speculators and Hedgers
C、How to Hedge Risks
D、How to Trade in Futures Market
答案
A
解析
文章最适当的题目应选A项。
转载请注明原文地址:https://kaotiyun.com/show/Xbid777K
本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
0
FECT综合(现代金融业务)
金融英语(FECT)
相关试题推荐
[A]text[B]college[C]store[D]basket[E]library[F]bank[G]passportItisneededwhenyoutravelabroad.
Mr.Blackwasyoungandable.Thebosslikedhim.LastmonthhewassenttoChinaonbusiness.BeforehewentbackfromChina,h
Mr.Blackwasyoungandable.Thebosslikedhim.LastmonthhewassenttoChinaonbusiness.BeforehewentbackfromChina,h
Nancyisnot______famousintheUnitedStates,butalsoabroad.
Janespent4hoursbuyingNewYeargifts.It______Jane4hourstobuyNewYeargifts.
Accordingtothepassage,whatdoesacardholderhavetoworryabout?
Increasinglygloballyintegratedfinancialmarketsposesignificantchallengestotheregulationofsecuritiesandfuturesmarke
Futurescontractscanbe______.
Futurescontractsevolvedfrom______.
Thefollowingareallstandardwithafuturescontractexcept______.
随机试题
患者,女,54岁,因慢性胆囊炎急性发作住院治疗两周后,病人自感身体恢复缓慢,害怕出院,时刻需要医护人员给予过多关注,该现象属于()。
在辐射采暖设计时,应注意________。
某高速公路设计车速120km/h,路面面层为三层式沥青混凝土结构。施工企业为保证工程施工质量,在施工中做了如下工作:(1)选用经试验合格的石料进行备料,严格对下承层进行清扫,并在开工前进行实验段铺筑;(2)沥青混合料的拌合站设置试验层,对沥青混合料及原材料
《安全生产许可证条例》规定,企业在安全生产许可证有效期内,严格遵守有关安全生产法律法规,未发生()的,安全生产许可证有效期满时,经原安全生产许可证颁发管理机关同意,不再审查,安全生产许可证有效期延期3年。
邓小平理论的形成经历了()。
下列关于Serv-UFTP服务器配置的描述中,错误的是()。
Internet在中国被称为( )。
Man:Okay,Mr.Taylor,let’sgoaheadandbegin.Firstofall,tellmeaboutyourlastjob.Mr.Taylor:Well,asstatedonmyresu
TheoriesonWhyWeLikeOtherPeopleInordertofigureoutthereasonswhywefallinlikeandwhywefallinlovewithpeop
WhenMomandDadGrowOldA)Theprospectoftalkingtoincreasinglyfragileparentsabouttheirfuturecanbe"oneofthemostd
最新回复
(
0
)