Futures

Impact of Dividend on futures price, depends on whether the futures contract is a cash-settled or physically settled contract. Consider the following to understand the impact of dividend on Futures price: Dividends – Cash settled futures contracts For cash-settled futures contracts, the impact of dividends on futures prices is generally minimal. This is because the…

Futures are exchange-traded derivatives contracts. These contracts help in locking the future delivery of a commodity or stock at a price set today. What is a derivative contract A derivative contract is a financial instrument that derives its value from the underlying assets, such as stocks, bonds, commodities, currencies, or interest rates. Derivative contracts are…