Financial Futures Markets: Hedging and Speculating With Futures Contracts
Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 Series: Chapter 13 Review
Futures contracts are basically agreements to buy or sell something at a specific price on a specific date in the future. Chapter 13 focuses on financial futures, which cover Treasury bills, Treasury bonds, stock indexes, and individual stocks. Two types of people use them: hedgers who want to reduce risk, and speculators who want to bet on price movements.