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Chapter 3 of 10
Introduction to Forwards and Futures
20 marks (13%)~7 hours study23 sections · 15 practice questions
Learning objectives
- Distinguish forwards from futures across standardisation, counterparty, and settlement.
- Draw and interpret payoff charts for long and short futures positions.
- Apply cost-of-carry pricing to derive a fair futures price.
- Compare commodity, equity, index, and currency futures.
- Explain the delivery process for interest-rate derivative (IRD) contracts.
Topics covered
01Forwards vs futures — standardisation and settlement
02Forwards and futures on equities
03Payoff charts for futures
04Futures pricing — cost of carry, basis
05Commodity, equity, and index futures
06Exchange-traded currency futures
07Interest rate parity and currency futures pricing
08Interest Rate Futures (IRFs)
09Delivery aspects of IRD contracts
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A peek at what's inside Chapter 3:
23
study sections
First section: "Why this chapter matters most"
20
cheat-sheet terms
Includes: Forward, Futures, Standardisation...
15
practice MCQs
Interactive — click an option to reveal the correct answer + explanation
3 underlying tabs
Equity / Currency / Interest Rate views
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