Value of a futures contract (FRM T3-3)

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  • Опубликовано: 30 июл 2024
  • [Here is my XLS trtl.bz/010318-yt-futures-value] The value of a futures contract is given by [F(0) - K]*exp(-rT). At contract inception, the delivery price is the prevailing forward price; K = F(0). Over time, as the long/short position tends toward maturity, the term of the contract shortens and the F(0) price changes. The delivery price, K, does not change during the life of the contract (the long has promised to pay this price for the commodity, the short has promised to receive this price in exchange for delivery of the commodity). Discuss this video in our FRM forum here: www.bionicturtle.com/forum/th....

Комментарии • 7

  • @robertgemesi277
    @robertgemesi277 5 лет назад

    Hi,
    Fantastic videos! May i ask do we use margin account in the case of delivery futures as well, or only for NDf trades?
    Thank you

  • @yannchevrier-foundy5063
    @yannchevrier-foundy5063 6 лет назад +1

    great video! thanks!

  • @Theotherguy256
    @Theotherguy256 3 года назад

    Very help. Thanks

  • @albay5348
    @albay5348 4 года назад

    so theoretically, if spot price remains the same at 1000 and all things being equal , 3 month down the road i should lose money on December contract due to shrinking cost of carry value. interestingly my analyzing software shows zero loss under this scenario even though cost of the contract clearly should decay in time ( benefiting short sellers). insanely confusing.

  • @juliahmadzore2026
    @juliahmadzore2026 5 лет назад

    Given that I have entered into a short position in the above contract and want to cut my losses how do I technically move out of the contract?

    • @kristopheralexis9911
      @kristopheralexis9911 2 года назад

      i dont mean to be offtopic but does any of you know of a way to get back into an Instagram account??
      I was stupid forgot the password. I would love any assistance you can give me!

  • @iluzjonistamarcingogolowic5197
    @iluzjonistamarcingogolowic5197 3 года назад

    This make me sleepy