Open Yale CoursesECON 252: Financial MarketsLecture 21 - Forwards and Futures<< previous session| next session >>Overview:Futures markets were started in Osaka, Japan in the 1600s to create an authoritative and meaningful marketprice for agricultural products, using standardized contracts. Since then, futures markets have been copiedaround the world to allow the hedging various future risks, financial and other. In the United States, theChicago Mercantile Exchange and the Chicago Board of Trade have been the most popular futures tradingmarkets. Although futures markets are changing and becoming more electronic, they are still important riskmanagement tools for farmers and present financial opportunities for all manner of hedgers and arbitrageurs.Reading assignment:
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