What are futures and options markets?
The futures and options markets are derivatives markets providing contracts that trade against the values of other assets or financial instruments. Futures and options work differently from each other, but have some interesting relationships.FuturesFutures are contracts to deliver a commodity or other asset at a specific price on a specific date. For example, the buyer of an unleaded gasoline futures contract is entitled to receive 42,000 gallons of unleaded gas on the date of the futures contract. The seller must deliver the gas.OptionsOption contracts are the right to buy or sell the underlying asset at a specific price until a specific date. The option buyer pays a premium for the option, and the seller receives the premium. The buyer must exercise the option to then buy the underlying asset, and the option buyer must deliver the asset.MarketsThe futures markets offer contracts on a wide range of assets, including commodities such as corn and copper, energy products such as oil and
