After completing this chapter, you will be able to answer the following questions:
What is a futures contract?
What are the differences between a futures contract and a forward contract?
What is the role of a clearing corporation in futures exchanges?
What is meant by margin and marking-to-market in futures markets?
How to understand futures quotes?
How can one arbitrage between futures markets and spot markets?
How are futures contracts traded?
In November 1967, Milton Friedman, a professor, believed that the Bank of England was likely to devalue the British pound. He approached a Chicago bank to borrow money in order to make gains when the value ...