boulevardier

• boulevardier 21 Nov 2022 23:59 UTC

  1 point

  on: How to Price a Fu­tures Contract

  Thanks, great post and clearly explained. One question – doesn’t longing imply that we are agreeing to buy the security for the strike price $k^{-}$ at time $T$?

  Long the future. You agree to sell the underlying security at time $T$ for price $k^{-}$. This contract costs you nothing upfront.