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Explain the difference between a call option and a long position in a futures contract?
Wiki User
∙ 12y ago
The only difference between a long call option and a long futures position is the derivative itself--one of them is an option, the other is a futures contract.
Wiki User
∙ 12y ago
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Explain the difference between a put option and a short position in a futures contract?
Well, the first difference is the root difference between a futures contract and an option contract: in a futures contract you MUST complete the sale at the end of the contract (if you didn't buy it back before the settlement date) but in an option you CAN.Once we're past that, the short position in a futures contract--the person who has the item the contract is derived from, such as a thousand bushels of wheat--is the same as the buyer of a put. Both of them have the thing now, and will transfer title to it after settlement or exercise.
Explain the difference between an explicit and an implicit lock?
clearly
What is the main difference between a contract and a promise?
in a contract you are legally bound by it and a promise is something u just make someone. so if u break your contract you could go to jail but if u break a promise you might lose a friend or who ever you made that promise with.
What are the differences between future and option contract?
There's one main difference and it's huge: An option contract gives the person who buys it the privilege of doing whatever it is the contract is written for. A futures contract imposes an obligation on the buyer. There are also liquidity requirements and requirements to pay performance bonds in futures trading that don't exist in options trading, but the real basic difference is that an options buyer can do something and a futures trader has to.
Explain the difference between forward contracts and futures contracts?
Forwards Contract: A forward contract is the simplest of the Derivative products. It is a mutual agreement between two parties, in which the buyer agrees to buy a quantity of an asset at a specific price from the seller at a future date. The Price of the contract does not change before delivery. These type of contracts are binding, which means both the buyer and seller must stay committed to the contract. This means they are bound to deliver or take delivery of the product on which the forward contract was agreed upon. Forwards contracts are very useful in hedging Futures Contract: A futures contract is an agreement to buy or sell an asset at a certain time in the future at a specific price. The Contractual terms of the futures contracts are very clear. The Futures market was designed to solve the shortcomings in the forwards contracts. Unlike forwards, futures are traded in organized exchanges. They also use a clearing house that provides the necessary protection to both the buyer and the seller. The price of the futures contract can change prior to delivery. Hence, both participants must settle daily price changes as per the contract values. Difference: Futures are traded in Organized Exchanges while Forwards are Over-The-Counter (OTC) traded
Explain the difference between a put option and a short position in a futures contract?
Well, the first difference is the root difference between a futures contract and an option contract: in a futures contract you MUST complete the sale at the end of the contract (if you didn't buy it back before the settlement date) but in an option you CAN.Once we're past that, the short position in a futures contract--the person who has the item the contract is derived from, such as a thousand bushels of wheat--is the same as the buyer of a put. Both of them have the thing now, and will transfer title to it after settlement or exercise.
How do you explain the difference between the vassals and serfs?
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What is the difference between temporary and contract?
temporary/contract work
Difference between rate contract and running contract?
A rate contract sets predefined rates for specific goods or services, usually for a specified period of time. On the other hand, a running contract is an agreement that remains in force until either party decides to terminate it. Running contracts typically do not have preset rates and are more flexible in terms of changes to the scope of work.
Explain the difference between young and mature mountains?
Explain the difference between young and mature mountains?
Explain the difference between complete and substantial performance?
Complete performance under a contract is when a party performs exactly as they were supposed to under the contract. Substantial performance is when a party performed but there was a minor deficit in their performance
What is the difference between contract of sell from contract of sale?
"Contract of sell" is just "contract of sale" misspelled.
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Describe is what it is and explain is why it is as it is
What is the difference between describe and explain?
Describe is what it is and explain is why it is as it is
Difference between Percentage of Completion method and Completed Contract method?
Difference between Percentage of Completion method and Completed Contract method?
Explain the difference between a cash and credit transaction for purchass and sales?
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Explain the difference between share of customer and customer equity
