Futures markets play a crucial role in generating information about the future cash market prices. As a finance professional, it is essential to understand the mechanics of this process. A futures contract is a binding agreement to buy or sell an asset at a predetermined price in the future. This allows investors to make informed decisions about the potential future value of an asset. By analyzing the behavior of futures markets, one can gain valuable insights into the future cash market prices. Thus, it is imperative to keep a close eye on the futures markets for any finance-related decision-making.
