One specialized type of security is called an equity futures

Assignment Help Finance One specialized type of security is called an equity futures

Finance

One specialized type of security is called an equity futures

One specialized type of security is called an equity futures. This is a contract that gu… Show more; Assignment: One specialized type of security is called an equity futures. This is a contract that guarantees you a share of a particular company to be delivered to you not today, but sometime in the future, at a price that is determined by the market right now. This price is usually called the futures price of the stock (note – the term is plural – “futures”). If you ‘buy’ this futures, you don’t pay for the shares now. You are actually signing a contract whereby you are committed to pay that price in a particular date in the future, and you are guaranteed to receive one share of the company at that time, irrespective of its actual market price at that future date. Suppose for example that the futures price of the XYZ company is $40. Suppose you ‘buy’ a 6-months futures contract. If six months later the share price is $45, you gain $5 per share. If the market price in 6 months is only $35, then you lose $5.; Using the; Yahoo Finance; here

Order Now

Ready to try a high quality writing service? Get a discount here
AllEscort