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Convergence

It is an essential concept in financial markets.

As we dive into the world of finance, it's important to understand the concept of convergence. This term refers to the gradual alignment of the futures contract's price with the spot or cash price of the underlying securities. In simpler terms, it's the process of closing the gap between the two prices over time. This plays a crucial role in the functioning of financial markets, making it a fundamental concept to grasp.

Expiration Time

This date is determined by the exchange on which the contract is traded. When we talk about expiration time in the context of finance, we are referring to the specific date ...

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Interdelivery Spread

The concept of time value of money in finance refers to the variation in price between contracts with similar terms but different expiration dates. This phenomenon is influe...

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Futures Contracts

This asset can be a commodity, stock, currency, or any other financial instrument. A fundamental concept in finance, Futures Contracts are powerful tools used to manage ris...

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Call Option

A call option grants the holder the right, but not the obligation, to purchase a stock at a predetermined price during a specific timeframe. It is commonly used by investors...

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