THEORY:
Futures are financial contracts obligating the buyer to purchase an asset , or the seller to sell an asset, such as a debt obligation, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Futures contracts are settled in cash.
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| PICTURE BY AECHAN AT FREEDIGITALPHOTOS.NET |
Graduate Futures are financial nightmares, enticing the bank / hedge fund / asset manager to buy the debt obligation (asset), at an arbitrary future date, determined by the then current giovernment and with a price heavily influenced by legislation, tax regulation, economic growth and whim. OR obligating the seller / graduate to reflect on the inequity of being born at the wrong time, questioning the actual value of the debt compiled, bemoaning the burden of perpetual insolvency, relieved only by the warm glow that burning your degree certificate brings when the electricity is cut off. Graduate Futures contracts are never settled.
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