00:01
Hello students, here is a question.
00:03
List and briefly define five essential parts of a commodity contract, which part have direct bearing on the price behavior of a contract.
00:13
So this is our question.
00:14
Let us discuss the answer.
00:16
Our first point is underlying asset, underlying assets.
00:27
So the underlying assets is a commodity that the contract is based on such as oil, gold or wheat.
00:32
This is primary factor that affects the price of a behavior of a contract and the second is contract size.
00:42
The contract size refers to the quality of underlying asset that the contract represent.
00:47
This can have bearing on a price behavior of a contract as large contract size may lead to large price movements.
00:55
And the third thing is delivery date.
01:00
So the delivery date is a date on which the underlying asset is to be delivered on settled...