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Lesson 3 of 4

Why Futures & Options Created ? | Forward Contract Explained | Why Derivatives Are Needed | Video 3

Why are derivative contracts needed? In Video 03, understand price uncertainty and Forward Contracts through a simple onion farmer and wholesaler example.

Learn how quantity, quality, delivery date and price can be agreed in advance, and why a fixed-price agreement can help manage price uncertainty.

For educational purposes only. Not investment advice.
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