3 ms·
That still does not satisfactorily answer the question though, why don't they just sign a purchase order with N month lead time? That still gives a well defined
by fyredge 6mo ago
That still does not satisfactorily answer the question though, why don't they just sign a purchase order with N month lead time? That still gives a well defined price ahead of time.
- nine_k 6mo agoBut that's literally what a "future" is.
- strulovich 6mo agoThe people who need the constant price do that, but creating this contract generates an investment at the same time. The person promising the price is taking a premium to take the risk, they can the sell that risk in a free market.