History of Commodity Derivatives Market in India
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

For a company producing biscuits using wheat flour, wheat is the primary ______

raw material

If the price of wheat rises, it would impact the company’s ______

profitability

Taking another example of airlines industry for which fuel cost forms a major part of operating ______

expenses

If the crude oil prices rise, Aviation Turbine Fuel price also rises, which impacts the ______ of the airline companies

<p>margins</p> Signup and view all the answers

To mitigate this risk, airline companies may hedge their price risk by buying futures contracts of ______ oil

<p>crude</p> Signup and view all the answers

To understand the relevance of commodity derivatives market to processor in a better way, an example of chana dal miller named ABC Corporation is provided in ______ 2

<p>Annexure</p> Signup and view all the answers

An excerpt from the news article providing details of how Starbucks, a world’s largest coffeehouse chain, buys coffee beans using a method called ______ is also provided in Annexure 3

<p>hedging</p> Signup and view all the answers

Banks lend to farmers, processors and manufacturers against the security of commodities pledged/ hypothecated to the ______ System

<p>Banking</p> Signup and view all the answers

It is obvious that when the price of the underlying commodity falls, the value of the banks’ collateral reduces ______

<p>substantially</p> Signup and view all the answers

The incidence of rising prices would result in increase in raw material cost and lead to fall in profitability and ability to ______

<p>repay</p> Signup and view all the answers

More Like This

Financial Derivatives Overview
42 questions

Financial Derivatives Overview

ExaltedPerception8293 avatar
ExaltedPerception8293
Commodity and Derivatives Market Overview
40 questions
Use Quizgecko on...
Browser
Browser