Consumption vs Investment Assets Investment assets are assets held by significant numbers of people purely for investment purposes (Examples: gold, silver) Consumption assets are assets held primarily for consumption(Examples: copper, oil)
Futures Contracts Available on a wide range of underlying assets · Exchange traded · Specifications need to be defined: What can be delivered, - Where it can be delivered, When it can be delivered Settled daily Options, Futures, and Other Derivatives,5 5th edition2002 by John.hull
The nature of derivatives a derivative is an instrument whose value depends on the values of other more basic underlying variables Options, Futures, and Other Derivatives, 5th edition C 2002 by John C. Hull