The biggest difference between options and futures exists that futures contracts need that the transaction specified by the contract must take place on the date specified. Options, on the other hand, provide the buyer of the contract the right — but not the obligation — to execute the transaction.
<h3>What is the difference between futures contract and options?</h3>
A futures contract is put into effect on the specified date. The buyer buys the underlying asset on this date. In the meantime, the buyer of an options contract is free to execute the agreement at any point before the expiration date.
You may therefore purchase the asset anytime you believe the circumstances are favorable. A futures contract gives the holder the option to purchase or sell a certain item at a predetermined price on a predetermined future date. Options allow the option to purchase or sell a certain asset at a specific price on a specific date, but not the obligation to do so.
Hence, The biggest difference between options and futures exists that futures contracts need that the transaction specified by the contract must take place on the date specified. Options, on the other hand, provide the buyer of the contract the right — but not the obligation — to execute the transaction.
To learn more about futures contract refer to:
brainly.com/question/1193397
#SPJ4
in the three months to February 2017 there were 33.4 million people in the UK labour force and 1.56 million people classed as unemployed. These figures gave an official UK unemployment rate of 4.7%.
Answer: Temperature
Explanation:
Two factors are responsible for weathering. They include; precipitation and temperature. Climates responsible for chemical weathering are warm climates, while that responsible for physical weathering are cold climates. What plays a more clinical role in all of these processes is moisture.
Answer:
vassals
Explanation:
A king (or lord) ruled large areas of land. To protect his land from invasion, the king gave parts of it to local lords, who were called vassals. In return, his vassals promised to fight to defend the king's lan
Answer:
a pause correlation when the correlation coefficient is greater than zero signifies that both bubbles move in the same direction