futures

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March 5, 2016 at 12:39 pm #303591
hermine
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What is the difference between settlement and open prices?
Which one to use in hedging calculations?
March 5, 2016 at 3:08 pm #303617
John Moffat
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Open price is the price at the start of the day. Settlement price is the price at which deals actually take place and is the one to use in calculations. (It is really only the previous examiner who brought in these terms once and made a nasty question 🙂 )
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