Options and Futures

Underlying Futures Contract

A futures contract that grants the holder the right to buy or sell a specific underlying asset at a predetermined price and date, known as the exercise date. This type of contract is commonly used in financial markets to hedge against potential losses and to speculate on price movements. The exercise of an option is an important concept for understanding risk management strategies and investment decisions. As a knowledgeable professor in finance, I encourage you to explore the world of options and their potential impact on your financial portfolio.

Related terms

Forward (Cash) Contract

Understand the meaning and definition of Forward (Cash) Contract in the context of stock market, trading, and investments.

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Resumption

Understand the meaning and definition of Resumption in the context of stock market, trading, and investments.

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Uncovered call writing

Understand the meaning and definition of Uncovered call writing in the context of stock market, trading, and investments.

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Uncovered put writing

Understand the meaning and definition of Uncovered put writing in the context of stock market, trading, and investments.

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Negative Yield Curve

Understand the meaning and definition of Negative Yield Curve in the context of stock market, trading, and investments.

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Runners

Understand the meaning and definition of Runners in the context of stock market, trading, and investments.

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