abhishreshthaa
Abhijeet S
What are futures and options?
A contract to make or take delivery of a product in the future, at a price set in the present
In formalized futures and options trading on exchanges, standardized agreements specify price, quantity, and month of delivery
Started in agriculture, but have expanded to a wide range of products
Simple Example:
If you agree in April with your Aunt Sue that you will buy two pounds of tomatoes from her garden for $5, to be delivered to you in July, you just entered into a futures contract!
A contract to make or take delivery of a product in the future, at a price set in the present
In formalized futures and options trading on exchanges, standardized agreements specify price, quantity, and month of delivery
Started in agriculture, but have expanded to a wide range of products
Simple Example:
If you agree in April with your Aunt Sue that you will buy two pounds of tomatoes from her garden for $5, to be delivered to you in July, you just entered into a futures contract!