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Convergence

It is an essential concept in financial markets.

As we dive into the world of finance, it's important to understand the concept of convergence. This term refers to the gradual alignment of the futures contract's price with the spot or cash price of the underlying securities. In simpler terms, it's the process of closing the gap between the two prices over time. This plays a crucial role in the functioning of financial markets, making it a fundamental concept to grasp.

Delivery Points

Futures exchanges have specific locations where commodities are delivered upon the expiration of a contract. These locations are carefully selected and approved by the exchan...

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Options Contracts

This allows investors to speculate on the future price movements of an asset without committing to a purchase. An option contract is a vital financial tool that grants inves...

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Expiration Time

This date is determined by the exchange on which the contract is traded. When we talk about expiration time in the context of finance, we are referring to the specific date ...

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Equity Options

They give the holder the right, but not the obligation, to buy or sell the underlying shares at a specific price on or before the expiration date. In the world of finance, t...

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