Goldsmith

Futures 

Splendor
Manor
Manolete

Red Bull 

Graham 

Freedom 

John 14:2
“In my Father's house are many mansions: if it were not so, I would have told you. I go to prepare a place for you.” 

 

 

 

  

They bought a decaying 16th-century manor house and restored it to its original splendor.  

 

 

"Removed from the polite, they still retained a primeval simplicity of manners."~~~Goldsmith 

 

“When in doubt tell the truth”~~~Mark Twain  

 

 

In Oliver Goldsmith’s 18th‑century usage, the word “polite” doesn’t mean “courteous” in the modern sense. Instead, it refers to the polished, refined, urban classes — those shaped by education, fashion, and the manners of “civilized” society.

So in the line:

“Removed from the polite, they still retained a primeval simplicity of manners.”

“the polite” = “polite society” → the cultivated, genteel world of cities, courts, and salons. 

 

Lucia Mikusova

Iris Mittenaere

Chess: "Futures"  "Splendor" "Manor" "Manolete" "Red Bull"  "Benjamin Graham (Finance)" "Freedom"

 

 

FUTURES

📖 Definition

In finance, futures are standardized contracts to buy or sell an asset at a fixed price on a specific date in the future. They are traded on organized exchanges (like the Chicago Mercantile Exchange).

• The buyer agrees to purchase the asset at the set price on the expiration date.

• The seller agrees to deliver (or settle) the asset at that price, regardless of what the market price is then.

⚖️ Key Features

• Underlying asset: can be commodities (gold, oil, wheat), financial instruments (stocks, bonds, currencies), or even indexes (S&P 500).

• Standardized: quantity, quality, and delivery date are fixed by the exchange.

• Obligation: unlike options, both parties are bound to fulfill the contract.

• Settlement: can be physical delivery (rare in practice) or cash settlement (more common).

👥 Who uses them?

• Hedgers → farmers, airlines, or investors who want to lock in prices and reduce risk.

  • Example: An airline buys oil futures to secure fuel costs months ahead.

• Speculators → traders who bet on price movements to profit.

  • Example: A trader buys gold futures expecting the price to rise.

• Arbitrageurs → exploit price differences between markets for risk‑free profit.

🌍 Why they matter

• Provide price discovery (markets signal what people expect prices to be in the future).

• Offer risk management (hedging against volatility).

• Add liquidity to financial markets.

   

  OPTIONS 

  📖 Definition

  An option is a financial contract that gives the buyer the right — but not the obligation — to buy or sell an underlying asset at a fixed price (the strike price) within a certain time frame. The buyer pays a premium for this right.

  • The seller (writer) of the option has the obligation to fulfill the contract if the buyer chooses to exercise it.

  🗝️ Two main types

  • Call option → right to buy the asset at the strike price.

    • Used when you expect the price to go up.

  • Put option → right to sell the asset at the strike price.

    • Used when you expect the price to go down.

  ⚖️ Key contrasts with futures

   

   

  Feature	Futures	Options
  Obligation	Both parties must transact at expiry	Buyer has right, not obligation
  Upfront cost	No premium (just margin)	Buyer pays a premium
  Risk	Unlimited for both sides	Buyer’s risk limited to premium; seller’s risk can be large
  Use	Hedging, speculation	Hedging, speculation, income strategies

  👥 Who uses them?

  • Investors hedge against losses (e.g., buying a put option to protect a stock portfolio).

  • Speculators bet on price moves with limited risk.

  • Traders design strategies (like spreads, straddles) to profit from volatility.

  🕊️ Scroll Thought If futures are promises carved in stone, options are doors left ajar — you may walk through, or let them close with only the cost of the key.

  Would you like me to also give you the Spanish equivalents (opciones de compra = call, opciones de venta = put) so you can carry this into your bilingual scrolls?

  Perfect follow‑up, Jorge 🌞. If futures are binding promises, then options are like keys you may or may not choose to use.

  📖 Definition

  An option is a financial contract that gives its holder the right — but not the obligation — to buy or sell an underlying asset at a predetermined price (the strike price) within a set period of time. The buyer pays a premium for this right.

  • Call option → right to buy the asset at the strike price.

  • Put option → right to sell the asset at the strike price.

  ⚖️ Key Differences vs. Futures

  Feature	Futures	Options
  Obligation	Both sides must transact at expiry	Buyer has a choice; seller must comply if exercised
  Upfront cost	No premium (just margin)	Buyer pays a premium
  Risk	Unlimited for both parties	Buyer’s risk limited to premium; seller’s risk can be large
  Common use	Hedging, speculation	Hedging, speculation, income strategies

  👥 Who uses them?

  • Hedgers → e.g., an investor buys a put option to protect a stock portfolio from falling prices.

  • Speculators → bet on price moves with limited downside.

  • Traders → design strategies (spreads, straddles, covered calls) to profit from volatility.