Re:Machine Learning: The High-Interest Credit Card of Techni...
by sokoloff on Saturday December 20, 2014 @08:18PM
(#8778607)
Agriculture and airlines tend to use futures to hedge, not options.
A (long) futures contract is the right AND obligation to purchase a commodity at a set price at a set time (and place).
A (call) options contract is the right BUT NOT the obligation to purchase a commodity at a set price within a set time (for the most typical American-style option).
A (long) futures contract is the right AND obligation to purchase a commodity at a set price at a set time (and place).
A (call) options contract is the right BUT NOT the obligation to purchase a commodity at a set price within a set time (for the most typical American-style option).