Futures and Options

Futures and options are financial tools used to manage the risk of price changes in things like commodities or stocks. A futures contract is an agreement to buy or sell an asset at a predetermined price on a specific future date, locking in the price ahead of time. An option gives the buyer the right, but not the obligation, to purchase or sell the asset at a set price within a certain period. Both help investors hedge against price fluctuations or speculate on future market movements, offering strategies to control risk or potentially profit from expected changes.