Ask

A futures contract is one where two parties agree to buy and sell a certain asset on a future date at a price fixed at the time of contracting. Based on course readings and other consulted sources cited with APA standards. Define future contracts, their characteristics and the obligations of the contracting parties.

Ask

The premium is the price at which the option trades, at which buyers and sellers set different bid and ask prices of the trade's options. Based on the course readings and other sources consulted and tested with APA standards. Define the importance of the premium in contracts, the factors necessary to calculate the premium and dividends.