A futures contract which entails the purchase and sale of a specific amount of an equity instrument or a stock index/ basket at a future date and for a given strike price. This type of futures contract is mostly settled in cash, and therefore, the two parties exchange, at maturity, a cash flow equal to the difference between the stock price at that time and the preset strike price.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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