What are futures and options?
August 01, 2007 14:36 IST
Futures and options represent two of the most common form of "Derivatives". Derivatives are
financial instruments that derive their value from an 'underlying'. The underlying can be a stock
BAFN303: Derivative Securities
Due: Week 9
This is an individual assignment.
The purpose of this assignment is to give you the opportunity to more fully understand the uses of
derivative securities. By objectively undertaking this as
Options (Hull 7,8)
We introduced the definition of an option in the first lecture. Recall:
An option is a contract between two parties where the buyer of the
option has the right to buy or sell some underlying asset for a
predetermined price at a predeter