Strike action, also called labour strike, on strike, greve (of French: grève), or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances.

The strike is labour’s strongest weapon against the employer and is the counter weapon of the LOCK OUT.” Strike may be of various types — namely general strike, stay in sit down, tools down strike, pen down strike, hunger strike, sympathetic strike.

But what is a strike and why do people do it? A strike is when a group of people, in this instance workers, agree to stop working. They do this to protest against something they think is unfair. Workers hope that in stopping working the people in charge will listen to their demands.

A work stoppage; the concerted refusal of employees to perform work that their employer has assigned to them in order to force the employer to grant certain demanded concessions, such as increased wages or improved employment conditions. Intimidation and coercion during the course of a strike are unlawful. …

What is another word for strike?

knock	hit
smack	thump
beat	pound
punch	slap
clout	cuff

For call options, the strike price is where the security can be bought by the option holder; for put options, the strike price is the price at which the security can be sold. Strike price is also known as the exercise price.

A strike price is set for each option by the seller of the option, who is also called the writer. When you buy a put option, the strike price is the price at which you can sell the underlying asset. For example, if you buy a put option that has a strike price of $10, you have the right to sell that stock at $10.

When the strike price is reached, your contract is essentially worthless on the expiration date (since you can purchase the shares on the open market for that price). Prior to expiration, the long call will generally have value as the share price rises towards the strike price.

A relatively conservative investor might opt for a call option strike price at or below the stock price, while a trader with a high tolerance for risk may prefer a strike price above the stock price. Similarly, a put option strike price at or above the stock price is safer than a strike price below the stock price.

Your stock option strike price is usually equal to the FMV of the company’s stock on the day the option is granted. It’s easy for public companies to determine their strike price: all they have to do is look at what the stock is currently trading at. That’s the price that people are willing to pay on the open market.

When given employee stock options in a private or public company, your Exercise Price or Strike Price is the price at which you have the option to purchase a given number of shares. The exercise price is determined by the Fair Market Value (FMV) at the time the options are granted.

Strike Price vs Spot Price As mentioned earlier strike price is the pre-determined or set price at which the security is traded in the future. Whereas the spot price is the current market price which is considered as the reference price while the parties agree to a certain strike price.

Forward price is based on the current spot price of the underlying asset, plus any carrying costs such as interest, storage costs, foregone interest or other costs or opportunity costs. Although the contract has no intrinsic value at the inception, over time, a contract may gain or lose value.

The main difference between spot and futures prices is that spot prices are for immediate buying and selling, while futures contracts delay payment and delivery to predetermined future dates. In either situation, the futures price is expected to eventually converge with the current market price.

A futures price is determined by the cost of its underlying asset and moves in sync with it. The cost of futures will rise if the cost of its underlying increases and will fall as it falls. But it is not always equal to the value of its underlying asset. They can be traded at different prices in the market.

Spot Market and Exchanges The New York Stock Exchange (NYSE) is an example of an exchange where traders buy and sell stocks for immediate delivery. This is a spot market. The Chicago Mercantile Exchange (CME) is an example of an exchange where traders buy and sell futures contracts.

Futures prices above the spot price can be a signal of higher prices in the future, particularly when inflation is high. Speculators may buy more of the commodity experiencing contango in an attempt to profit from higher expected prices in the future.

Contango is thus a bullish indicator, showing that the market expects the price of the futures contract to increase steadily into the future.

In order to profit from backwardation, traders would need to buy a futures contract on gold that trades below the expected spot price and make a profit as the futures price converges with the spot price over time.

As a rule of thumb, if you’re investing in commodities ETFs, backwardation is good and contango is bad. Investors can never be certain which way the market will go. Some futures, like pigs, wheat and natural gas are almost always in contango. Others, such as soybeans and gasoline, are often in backwardation.

Contango is normal for a non-perishable commodity, like crude oil and products, which have a cost of carry. Such costs include storage fees and interest forgone on money that is tied up in inventory.

Contango and Backwardation are the terms used to define the price of the futures curve for a commodity….Contango vs Backwardation Comparison Table.

Basics of Comparision	Contango	Backwardation
Demand-Supply Scenario	Contango has a current supply surplus.	Backwardation has a current demand surplus.

‘ That’s a Positive Sign. Oil prices have been trading in a pattern known as contango this year, where spot prices and near-term futures are worth less than futures expiring several months from now.

Another way for traders to profit off a contango market is to place a spread trade. Going back to the example, say a trader believes that the spot price of oil will go even lower versus the future month’s contract. A trader would short the spot month contract and buy the further out month.

One has to buy in lots in futures that is the reason why it seems to be expensive but when you will compare same amount of shares in cash and futures segment, futures requires less amount of investment. For example an investor wants to buy 100 shares of ABC company which amounts to Rs. 1000 each.

A spot price is defined by the number of buyers and sellers interested in trading in that security, commonly referred to as depth.

1. There is no mathematical formula for Spot price. It is more of an economic concept rather than a mathematical part.
2. It is the reference or starting point for pricing many financial products.

The relationship between the futures price of an asset being greater than the expected spot price of the asset on the delivery date of the contract.