Chapter 31 - Future Markets

 31.a: Define and describe the key features and specifications of a futures contract, including the underlying asset, the contract price and size, trading volume, open interest, delivery and limits

31.a.1 Key Features of Futures Contract

31.b: Explain the convergence of futures and spot prices

31.b.1 Margin Requirement

31.c: Describe the role of an exchange in futures transactions

31.d: Explain the differences between a normal and inverted Futures

31.e: Describe the mechanics of the delivery process and contrast it with cash settlement

31.f: Evaluate the impact of different trading order types

31.g: Describe the application of marking to market and hedge accounting for futures

31.h: Compare and contrast forward and futures contracts

31. Key Concepts