Futures &

Options
By: Olivia Pierce
Futures Contract
● A contract that assures that a seller will provide a certain amount of a good to the buyer at a specific, mutual date

● A profit can be made because if the buyer gets the product for less than it is sold at the market rate, the seller will
benefit because they will sell it at the actual market price and they will profit from the difference in the two prices.
Currency Futures
● A currency future is a contract between two people who agree to trade some sort of good or different money
currencies and agree upon a future date to trade back their goods. One of the people in this contract will be
profiting depending on how much the good has changed in value. One would lose money if the good they traded
lost value

Currency futures can be made with money currencies Demonstration on how the profits would work for any kind of good
Options
● An option is a contract that gives the owner of the option the right, but not the
obligation, to buy or sell shares of a stock at a specified price on or before a
specified date.
● The chart to the right demonstrates some of the differences between options
and futures.
Call Option vs. Put Option
● A call options give the owner of the option the right to buy shares of a stock at a specified price within the time
limits of the contract.
● A put option gives the owner of the option the right, but not the obligation, to sell (rather than buy, as in a call
option) shares of a stock at a strike price during some period of time.