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They are roughly the same thing packaged differently. Both can be used to lock-in the price at a certain premium.
by csomar 1y ago
They are roughly the same thing packaged differently. Both can be used to lock-in the price at a certain premium.
- mlrtime 1y agoThey are both derivatives but using a farmer as an example is 100% futures. For commodities, the Futures demand delivery of the underlying. Options are settles in cash.