“How to Price a Future,” breaks down the intricate process of futures pricing into clear, digestible steps. It starts with explaining the fundamental concept of futures contracts and their market role. The infographic then delves into key components influencing futures prices, including the underlying asset price, interest rates, and time to expiration. Additionally, it covers important formulas and practical examples to illustrate these principles. Designed for traders of all levels, this visual guide simplifies complex calculations and provides valuable insights into factors affecting futures pricing, empowering you to confidently make informed trading decisions.

Source: How to Price a Future