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The latter two portions are entirely comprised of questions rather than responses. The solutions to those questions can be found in the IGNOU-provided study materials. To earn high scores and breeze through your test, you must also master these questions.
An Overview of IGNOU MFP-3 Syllabus
A commodities market is one that deals in raw materials rather than finished goods, such as cocoa, fruit, and sugar. Hard commodities, such as gold and oil, are mined. [1] Futures contracts are the oldest form of commodity investment. [Citation required] Physical trading and derivatives trade in commodity markets can include spot prices, forwards, futures, and options on futures. [clarification required] For millennia, farmers have employed a primitive kind of derivative trading in the commodities market to control price risk. A financial derivative is a financial instrument whose value is derived from an underlier commodity Derivatives are exchanged on exchanges or over-the-counter (OTC). A growing number of derivatives are traded through clearing houses, some of which have central counterparty clearing and offer clearing and settlement services on a futures exchange as well as off-exchange in the OTC market.
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