marketing and economic principles

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10 Terms

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Margin

The amount of money deposited to secure futures contracts

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Futures contract

A written agreement to buy and receive or sell and deliver a commodity at a future date

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Option

A formal contract that gives the right to buy or sell a commodity at a certain price

4
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Hedging

The buying or selling of futures contracts to protect against price changes

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Strike price

The cost to purchase an option

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Marketing

All the economic activities involved in preparing and positioning the product for consumers

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Utility

Satisfaction

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Bear market

A negative market outlook

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Bull market

A positive market outlook

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Put

The option to sell a commodity at a certain price within a certain time