-5
votes
1answer
48 views

A goldsmith's hedging strategy, simplified

A goldsmith has bought 100oz physical gold for his trade and payed $1300/oz. He is going to be ready to sell his jewels in 3 months from purchase. In order to hedge against falling prices of gold, he ...
0
votes
1answer
59 views

Why futures has a mark to market concept that is not present in stocks

A futures contract is traded just like a stock or an option contract. So how come a futures contract has the concept of mark to market whereas a stock or an option does not have this concept? IS it ...
3
votes
1answer
117 views

Are futures options eligible for the 60/40 tax rule?

How are options taxed when the underlying asset is a futures contract. Futures contracts in the US have a favorable tax treatment known as the 60/40 rule, where 60% of profits are taxed at the long ...
5
votes
3answers
233 views

Why trade futures if you have options

At this link:http://www.investopedia.com/ask/answers/09/options-vs-futures.asp they explain the difference between futures and options. It seems futures is an obligation while options is an 'right ...
5
votes
3answers
1k views

Do futures have premium in the price, just as options do?

Looking at Wikipedia's the pricing of futures, I wonder if entering into a futures contract requires one to pay premium just as entering into an option contract? In other words, is the premium of a ...
1
vote
3answers
736 views

Search index futures in Yahoo Finance or Google Finance

I was wondering if index futures and options information are available in Yahoo/Google Finance. Say futures/options for Dow Jones Industrial Average.
6
votes
2answers
221 views

What are futures and how are they different from options?

As a form of investment there are contracts to buy commodities at a specific time in the future or at a specific price. How is this different from an option to buy a share?