#Hedge

Derivative

Derivative

Because they derive their value from something other than themself.


Options

An option on a futures contract is the right, but not the obligation, to buy or sell the underlying futures... View Article


Option Premium

cost of the right to buy or sell the underlying futures contract Resources https://www.cmegroup.com/education/courses/introduction-to-options/introduction-to-options.html


Basis

Cash Price – Futures Price


DTE

Days to Expiration refers to the number of days until an option or futures expires