57 Forwards

Summary unavailable. Hi. In this video, we'll introduce a new asset class, which is called derivatives. So the name comes from the fact that the value of such asset is derived from its underlying asset. So what could be the underlying asset? It could be virtually anything. It could be something we have already learned before, like stocks or bonds. It could be physical commodity, like livestock, crops or metals, or it could be derivatives themselves. So you can create derivatives with underlying assets of other, being other derivatives. Okay. So in this, in this session, we will only introduce the most basic form of derivatives, which is called the forwards, or forwards contract. So imagine there's a rice market