Financial Management Help Please?>? - differences between forward contract a future contract and options
What are the differences between a futures contract, futures and options?
Tuesday, February 16, 2010
Differences Between Forward Contract A Future Contract And Options Financial Management Help Please?>?
1 comment:
There are some similarities between the futures and forward contracts. Both are used to hedge investments. In a future contract and forward contract, both parties reached agreement on a future business. The buyer agrees to purchase a product at a specified future date for a specific price for the seller. In Touch link term accounts are settled every day in the spot market, while futures contracts are cash settled daily.
In the financing option is a contract between a buyer and a seller gives the buyer the right, but has no obligation to buy or sell an asset at a later date at an agreed price.
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