Hello guys,
I have a rough understanding of what futures and derivatives are, but I can't see why a futures contract is considered a derivative.
Is it because the value of a futures contract on coffee is derived from commodity coffee itself, even though the owner of this contract does not actually own the coffee? Not sure if that makes any sense...
Please help me out
I have a rough understanding of what futures and derivatives are, but I can't see why a futures contract is considered a derivative.
Is it because the value of a futures contract on coffee is derived from commodity coffee itself, even though the owner of this contract does not actually own the coffee? Not sure if that makes any sense...
Please help me out