Editing Futures contract (section)

==Definition of a futures contract==
The following definition from Björk<ref>Björk, Tomas. ''Arbitrage theory in continuous time'', Cambridge University Press, 2nd Edition, 2004 {{ISBN|978-0-19-927126-9}}{{page needed|date=February 2024}}</ref> describes a futures contract with delivery of item J at time T:
* There exists in the market a quoted price ''F(t,T)'', which is known as the futures price at time t for delivery of J at time T.
* The price of entering a futures contract is equal to zero.
* During any time interval <math> [t,s] </math>, the holder receives the amount <math> F(s,T) - F(t,T) </math>. (this reflects instantaneous marking to market)
* At time ''T'', the holder pays ''F(T,T)'' and is entitled to receive J. Note that ''F(T,T)'' should be the spot price of J at time T.