Interpreting futures fair value in the premarket | Finance & Capital Markets | Khan Academy
How to interpret the market price of a futures contract relative to the fair value in the premarket. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-back-security-overview?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
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https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/futures-fair-value-in-the-pre-market?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
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