MGT613 - Production / Operations Management
Question(s) similar to the following:
Describe the role of clearing house in futures market.
Question 1: Describe the role of clearing house in futures market.
Answer: Suggest Edit
The clearinghouse for futures markets operates in the same way as the clearinghouse for options. Buyers and sellers settle with the clearinghouse, not each other. Thus, the clearinghouse, and not- another investor, is actually on the other side of every transaction and ensures that all payments are made as specified. It stands ready to fulfill a contract if either buyer or seller defaults, thereby helping to facilitate an orderly market in futures. The clearinghouse makes the futures market impersonal, which is the key to its success, because any buyer or seller can always close out a position and be assured of payment.
Similar Questions:
Question 2: Describe the role of clearing house in futures market.
Answer: Suggest Edit
The clearinghouse for futures markets operates in the same way as the clearinghouse for options. Buyers and sellers settle with the clearinghouse, not each other. Thus, the clearinghouse, and not- another investor, is actually on the other side of every transaction and ensures that all payments are made as specified. It stands ready to fulfill a contract if either buyer or seller defaults, thereby helping to facilitate an orderly market in futures. The clearinghouse makes the futures market impersonal, which is the key to its success, because any buyer or seller can always close out a position and be assured of payment.
Past Papers of MGT613 - Production / Operations Management
Question 1: Describe the role of clearing house in futures market.
Answer: Suggest Edit
The clearinghouse for futures markets operates in the same way as the clearinghouse for options. Buyers and sellers settle with the clearinghouse, not each other. Thus, the clearinghouse, and not- another investor, is actually on the other side of every transaction and ensures that all payments are made as specified. It stands ready to fulfill a contract if either buyer or seller defaults, thereby helping to facilitate an orderly market in futures. The clearinghouse makes the futures market impersonal, which is the key to its success, because any buyer or seller can always close out a position and be assured of payment.Similar Questions:
Question 2: Describe the role of clearing house in futures market.
Answer: Suggest Edit
The clearinghouse for futures markets operates in the same way as the clearinghouse for options. Buyers and sellers settle with the clearinghouse, not each other. Thus, the clearinghouse, and not- another investor, is actually on the other side of every transaction and ensures that all payments are made as specified. It stands ready to fulfill a contract if either buyer or seller defaults, thereby helping to facilitate an orderly market in futures. The clearinghouse makes the futures market impersonal, which is the key to its success, because any buyer or seller can always close out a position and be assured of payment.Sponsored
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