Added: 11 months ago
From: khanacademy
Views: 50,397
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  • wow....i wish i had a prof like you

  • this 3 minutes video managed to explain what a professor at the university of Manchester couldn't do in two two-hours lectures.

  • Got confused when you stated saying pies per pound instead of apples per pound ha

  • sir...did you draw that with your mouse??!

  • @WhatCnaThisBe wacom tablet I guess

  • sexy voice

  • This dude can draw...!

  • A simple yet elegant, precise and understandable treatise on forward contracts which are the basis of futures commodity contracts and why the maligned "speculators" actually provide an extremely valuable service to producers and consumers.

  • @Entelex

    Who is the speculator in this forward contract? The producer or the chain?

  • it seems the Techies such as Khan, that can relate to humans are the ones that become the most popular and go the farthest in this world....

  • Comment removed

  • I like this video.

  • This video is great.

  • Good video.

  • Thank you for sharing.

  • So... Forward contracts were invented to protect against volatility. But, all traded commodity futures are extremely volatile. Irony?

  • 20 cents a pound? Gee Raplhs market ripped me off...

  • @ABCba5tard You know why? If you went to the farmer that actually sold them, it would actually be around 20-40 cents a pound. But it raises by like a few dollars because it takes a lot of money for shipping, and after shipping, a huge amount of apples is thrown away because they gone bad, they got damaged, etc. So that money covers for that.

  • @randomwindowsstuffz Yeah, I already knew before you replied. I was at a hobby store and people have been compensating for shipping.

  • Dude, YOU ROCK ... you really do!!!

  • haha

    Compare this to his 1+1 video. I've got a feeling his drawing ability has increased.

  • I'm sorry, are you just good at everything?

  • What kind of research do you do for all of these videos?

  • @JaoquinQ he has a MBA from harvard university, the best university in the world, he does not need to research cause he IS the source of information.

  • Si been watching yr vids but dont get why 1 million x PI times 0.20???

  • What would happen in the event of a (partial) harvest failure though? I assume they would have clauses in the contract that anticipates such events, right?

  • damn man, the farmer looks like a boss.

  • @ilikechess1 he is a mafia leader in disguise.

  • Nice video, you are providing a wonderful service to people all over the world! Keep up the good work.

  • great way to explain a thing ! nice drawing :)

  • U r a master in drawing now... Congratz

  • this is the most clear and concise explanation of forward contracts that I have ever heard.

  • I like the drawing :)

    more visuals yay :P

  • loved the drawings! :D

  • You sir...are an artist

  • @OsloBobby and also a mathematician, physicist, engineer, buisness man hedgefund analyst...... the list goes on

  • did he draw that?!

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