futures-contract

Learning objectives: Define derivatives, describe the features and uses of derivatives and compare linear and non-linear derivatives. Describe the specifics of exchange-traded and over-the-counter markets, and evaluate the advantages and disadvantages of each. Differentiate between options...

Hi all, I would like to understand the relationship between price return and the term structure of futures conteact. I understand that contango is associated with negative roll return while positive roll return with backwardation. How is the price return related to contango and backwardation ...

The value of a futures contract is given by [F(0) - K]*exp(-rT). At contract inception, the delivery price is the prevailing forward price; K = F(0). Over time, as the long/short position tends toward maturity, the term of the contract shortens and the F(0) price changes. The delivery price, K...

Hi David, I was wondering if you could give an example of how an option on a futures contract would work concretely? I am having a hard time figuring out what are the actual steps on this one. Let's say we have a call for instance - is the strike price the same as the price of the underlying...

Learning objectives: Differentiate between investment and consumption assets. Define short-selling and calculate the net profit of a short sale of a dividend-paying stock. Describe the differences between forward and futures contracts and explain the relationship between forward and spot prices...

Learning objectives: Explain the convergence of futures and spot prices. Describe the role of a clearinghouse in futures and over-the-counter market transactions. Describe the role of collateralization in the over-the-counter market and compare it to the margining system. Identify the...

Learning objectives: Define and describe the key features of a futures contract, including the asset, the contract price and size, delivery, and limits. Describe the rationale for margin requirements and explain how they work. Describe the mechanics of the delivery process and contrast it with...