Chapter 1 - Background and Context
Chapter 1 - Background and Context

In this introductory chapter, we will talk about the background and the context that led to the emergence of Futures. We will start this chapter by discussing the history of Derivatives and the purpose why Derivative contracts came into existence. We will also distinguish between the two markets where Derivatives are traded. Finally, we will talk about the oldest form of a Derivative contract called Forwards, the problems that these instruments faced, and why these very problems gave birth to Futures.

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