Who Benefits from a Futures Contract, a Call Contract, and a Put

question 10

Essay

Who benefits from a futures contract, a call contract, and a put contract, if prices fall?

---

Definitions:

Increase

A rise in magnitude, quantity, or degree; an upward trend in a numerical value or variable.

RSquare Value

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable(s) in a regression model.

Regression Equation

A mathematical formula used to predict a variable based on its relationship with one or more other variables.

Variation

Differences or changes in the condition, amount, or level of something, typically within a set or series of items.