Futures contract Essays & Research Papers

Best Futures contract Essays

  • Futures Contract - 579 Words
    Test Bank: Chapter 2 Mechanics of Futures and Forward Markets 1. Which of the following is true (circle one) a) Both forward and futures contracts are traded on exchanges. b) Forward contracts are traded on exchanges, but futures contracts are not. c) Futures contracts are traded on exchanges, but forward contracts are not. d) Neither futures contracts nor forward contracts are traded on exchanges. 2. Which of the following is not true...
    579 Words | 2 Pages
  • Futures Contract - 874 Words
    FINE-7670 Risk Management and Applications to Energy Firms Spring 2014 January 15, 2014 HW#1 PART I: Analytical Questions 1. The price of gold is currently $600 per ounce. The forward price for delivery in 1 year is $800. An arbitrageur can borrow money at 10% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income. 2. On September 12, 2006, an investor owns 100 Intel shares. As indicated in the table below, the share...
    874 Words | 9 Pages
  • Future Contracts - 316 Words
    A futures contract is a commitment to make or take delivery of a specific quantity of a commodity or other financial obligation at a predetermined place and time in the future. All terms of the contract are standardized and established beforehand, except for the price, which is determined by open outcry in a pit or ring on the exchange trading floor of a commodity exchange. All contracts ultimately are settled either through liquidation (by offsetting purchases or sales) or by the delivery of...
    316 Words | 1 Page
  • Futures Contract and Commodity Exchange
    COMMODITY MARKET [pic] INDEX |Chapter No |Topic |Page No. | |1 |Introduction to Commodity Market |04 | |2 |History of Evolution of Commodity Markets |08 | |3...
    13,036 Words | 56 Pages
  • All Futures contract Essays

  • Rainfall Futures Contract - 1076 Words
     Rainfall Future Contracts Throughout the year, there are different seasons that could have several impacts on many industries. To be precise, the elements of weather can actually impact a company and how well they do during the different seasons of the year. Rainfall is a part of our life in some areas, almost daily, and others randomly, affecting every business in some sort of way. Although we can’t predict or control the weather, there is a way companies can hedge any losses that weather...
    1,076 Words | 4 Pages
  • Futures Contract (Derivatives) - 5502 Words
    Futures contract In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today (the futures price or the strike price) but with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange. The party agreeing to buy the underlying asset in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to sell the...
    5,502 Words | 15 Pages
  • Futures Contract and Spot Rate
    PART I. MULTIPLE CHOICE QUESTIONS 1. When the value of the British pound changes from $1.50 to $1.25, then the pound has _________ and the dollar has _________. a. appreciated; appreciated b. depreciated; appreciated c. appreciated; depreciated d. depreciated; depreciated 2. When the exchange rate changes from 1.0 euros to the dollar to 0.8 euros to the dollar, then the euro has _________ and the dollar has _________. a. appreciated;...
    4,517 Words | 20 Pages
  • Futures Contract and Exchange Rate
    1 The three year zero rate is 7% per annum and the four year zero rate is 7.5% pa (both continuously compounded). What is the one year (continuously compounded) forward rate starting in three years’ time? (2 marks) With the formula with continuously compounded, = =0.09 =9% The one year forward rate starting in three years’ time is 9% 1. The zero rate curve is flat at 6% pa with semi-annual compounding. What is the value of a FRA where the holder receives interest at the rate of 8% per...
    893 Words | 4 Pages
  • Futures Contract and Bank - 17202 Words
    Multiple choice type questions for Financial Instruments and Markets As requested, below are questions from my "data base" of multiple choice type questions. I do not expect to be able to put the answers on the web before your final exam. I do not have a "data base" of the answers to these questions. Some of these questions are on material that was on the first exam and other questions are on material that I covered last year but did not cover this year (such as margin, selling stock short)....
    17,202 Words | 76 Pages
  • Futures Contract and Market - 9046 Words
    A PROJECT REPORT ON AN ANALYTICL STUDY OF DERIVATIVES IN FUTURES WITH REFERENCE TO UNICON SECURITIES Submitted in partial fulfillment for the award of the Master of Business Administration [pic] I, under signed here by declare that the project report entitled “AN ANALYTICAL STUDY OF DERIVATIVES IN FUTURES WITH REFERENCE TO UNICON SECURITIES”, and this project is submitted to XXXXXX, affiliated to XXXX, is drafted by me and is original work of my own....
    9,046 Words | 41 Pages
  • Futures Contract and Option - 1544 Words
    tistisSolution: Exercise 1 1. What is the difference between a long forward position and a short forward position? Ans: When the enters into a long forward contract, he/she is agreeing to buy the underlying asset for a certain price at a certain time in future. When the enters into a short forward contract, he/she is agreeing to sell the underlying asset for a certain price at a certain time in future. 2. Explain carefully the difference between hedging, speculation, and arbitrage....
    1,544 Words | 4 Pages
  • Oman Crude Oil Futures Contract
    Oman Crude Oil Futures Contract 1. Exchange: Dubai Mercantile Exchange 2. Trading Unit: 1,000 U.S. barrels (42,000 gallons) 3. Contract Value: The contract value shall be the Final Settlement Price multiplied by one thousand (1,000) multiplied by the number of Contracts to be delivered 4. Price Quotation: U.S. dollars and cents per barrel 5. Trading Symbol: OQD 6. Trading Hours : Electronic trading is open from 16:00 CST/CDT Sundays and from 17:00 CST/CDT Monday to Thursday and closes at...
    843 Words | 3 Pages
  • Distinguish Between Futures and Forward Contract
    Distinguish between futures and forward contract Futures contract A futures contract is a contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts feature the quality and quantity of the underlying asset, they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others...
    798 Words | 3 Pages
  • Futures Contract and Risk Management Techniques
    Australian School of Business School of Banking and Finance FINS 3635 OPTIONS, FUTURES AND RISK MANAGEMENT TECHNIQUES Course Outline Semester 1, 2012 Part A: Course-Specific Information Part B: Key Policies, Student Responsibilities andSupport Table of Contents PART A: COURSE-SPECIFIC INFORMATION 1 2 2.1 2.2 2.3 2.4 2.5 3 STAFF CONTACT DETAILS COURSE DETAILS Teaching Times and Locations Units of Credit Summary of Course Course Aims and Relationship to Other Courses Student Learning...
    3,344 Words | 14 Pages
  • Derivatives: Futures Contract and Hedge Fund
    Plekhanov Russian Academy of Economics International Economics DERIVATIVE MARKETS FUTURES, FORWARDS, OPTIONS, SWAPS, CAPS AND FLOOR MARKETS Prepared by: Zagorskaya Ksenia 1. OVERVIEW OF DERIVATIVE MARKET Derivatives are financial instruments whose value is derived from the value of something else. They generally take the form of contracts under which the parties agree to payments between them based upon the value of an underlying asset or other data at a particular point in time....
    3,945 Words | 12 Pages
  • Forward, Future and Option Contract: Differences
    What are the difference between a forward contract, a futures contract and options? The three types of contracts all allow individuals to purchase or sell assets during a certain period. However, differences exist between the three types of contractual agreements. Differences between future & forward contracts Future and forward contracts are when parties agree in writing to sell or purchase an asset during a certain upcoming time at an agreeable price on the date of the...
    386 Words | 2 Pages
  • Factors Affecting Success and Failure of Futures Contracts
    By Owais Javaid Qureshi {321} MFC Batch 2010-12 Under the guidance of Dr. Nilanjan Ghosh Sr. Vice President and Head, Research and Strategy, MCX Submitted in the partial requirements for the Degree of Masters in Finance & Control Department Of Business & Financial Studies University Of Kashmir Certificate This is to certify that the project entitled “Factors Affecting the Success and Failure of Futures Contracts” is research work done by Owais Javaid Qureshi,...
    16,664 Words | 50 Pages
  • Derivatives: Futures Contract and Inc. Common Stock
    1. (Problem 1.12) Suppose bank’s loan officer tells you that if you take out a mortgage (i.e., you borrow money to buy a house) you will be permitted to borrow no more than 80% of the value of the house. Describe this transaction using the terminology of short-sales. Answer: We are interested in borrowing the asset “money” to buy a house. Therefore, we go to an owner of the asset, called Bank. The Bank provides the dollar amount, say $250,000, in digital form in our mortgage...
    1,032 Words | 6 Pages
  • Futures Contract and Zero-coupon Bond Rate
    ESTION 1. 2.24 When the money ($1000-($3000-$2000)) lost from one contract, margin call will be have. This could happen when the price of the wheat increase by (1000/ 5000) =$0.2 the price of wheat must increase to (4.5+0.2) = $4.7 per bushel for there to be a margin call. $1,500 can be withdraw from the margin account, this will happen if the futures price fall to (1, 500 / 5,000) = $0.3 to (4.5 – 0.3) $42 per bushel. 4.25 (a) the six-month zero-coupon bond rate is...
    420 Words | 4 Pages
  • Tiffany: Futures Contract and Exchange-rate Risk
    Case: Tiffany & Co- 1993 (HBS 298-014) Assignment Questions 1. In what way(s) is Tiffany exposed to exchange-rate risk subsequent to its new distribution agreement with Mitsukoshi? How serious are these risks? Answer: About 15% of (1992) sales of $492mln or ~ $75mln will now be earned in Yen, but will have to be reported in $. At a Net Income (1992) of $25mln, the risks caused by this exposure are significant. Data from exhibit 6 shows that in a 6-month period (Apr-Sep)...
    792 Words | 3 Pages
  • Forward Contract - 731 Words
    Financial Risk Management Financial Risk Management Assignment 1 Tutor: Thanh Nguyen Tutorial Time: 12pm (ED1 401) Vaishnav Dhimaan (15902398) Vipul Joshi (15905149) Financial Risk Management, FIN3FRM Semester 2, 2012 Assignment 1 Q.1 An investor enters into a short forward contract to sell 100,000 British pounds for U.S. dollars at an exchange rate of 1.9000 U.S. dollars per pound. How...
    731 Words | 3 Pages
  • Forward Contract - 493 Words
    Tutorial 3- Tutorial Questions Problem 2.1. Distinguish between the terms open interest and trading volume. Problem 2.3. Suppose that you enter into a short futures contract to sell July silver for $17.20 per ounce. The size of the contract is 5,000 ounces. The initial margin is $4,000, and the maintenance margin is $3,000. What change in the futures price will lead to a margin call? What happens if you do not meet the margin call? Problem 5.2. What is the difference between the...
    493 Words | 2 Pages
  • Contracts Derivatives - 947 Words
    Why do they call these contracts derivatives? Where is the optionality in these contracts? Weather derivatives structures commonly used are: i) cap - a call option; ii) Floor - a put option; iii) Collar - a put and a call option, usually with little or no premium; iv) Swap - a derivative with a profit and loss profile of a futures contract v) Digital option - an option that pays either a predetermined amount if acertain temperature or degree day level is reached, or nothing at all in...
    947 Words | 4 Pages
  • Forward Contract - 1650 Words
    To what extent does a currency forward contract need to play a formal role in multinational companies? A globalisation has risen over the last 20 years. Because of this factor, international markets have increased rapidly, therefore a large number of companies have been particularly interested in global operatings, such as, export trade, import trade, overseas sales (Moosa, 2003). A subsequent significant trouble looming large for...
    1,650 Words | 6 Pages
  • Options and Futures - 2927 Words
    Options & Futures I. Introduction to Derivatives Prof. Domenico Cuoco Term 5, 2013 What is a Derivative? Basic Types of Derivatives The Market for Derivatives Outline 1 What is a Derivative? 2 Basic Types of Derivatives 3 The Market for Derivatives Options & Futures, Prof. Domenico Cuoco, 2013 I. Introduction to Derivatives 2 What is a Derivative? Basic Types of Derivatives The Market for Derivatives What is a Derivative? Derivatives and...
    2,927 Words | 44 Pages
  • futures options - 1588 Words
    Walking Through Some Examples of Futures and Options Contracts – Speculation and Hedging As Dr. Cogley said in class the other day, sometimes futures contracts and options are hard to wrap your head around until you see them a few times. So I’ve written up some examples similar to those Dr. Cogley did in lecture, with a little more explanation about how we get the results that we do. But before we jump into that, we need to revisit our terms. 1. Forward contract: A buyer and a seller agree to a...
    1,588 Words | 7 Pages
  • Forwards and Futures - 547 Words
    Difference between futures market and forward market? Forward market Market dealing in commodities, currencies, and securities for future (forward) delivery at prices agreed-upon today (date of making the contract). In commodity and currency markets, forward trading is used as a means of hedging against sharp fluctuations in their prices. Future market Definition Market in which participants can buy and sell commodities and their future delivery contracts. A futures market provides a...
    547 Words | 2 Pages
  • Futures and Options - 1712 Words
     Derivatives Market. In the financial world, we find various investment instruments called derivatives. It is defined as financial derivative or derivative financial products to those whose value is based on the price of another asset. This means that financial derivatives are instruments whose price or value is not determined directly but depend on the price of another asset which we call the underlying asset. The underlying asset can be a stock, a stock...
    1,712 Words | 6 Pages
  • Currency Futures - 461 Words
    Introduction Currency Futures Defined Currency Futures are standardised foreign exchange derivative contracts on a recognised stock exchange to buy or sell a standard quantity of one currency against another on a specified future date at a specified price. It allows clients to take a view on the movement of the exchange rate as well as hedge against currency risk. Clients can use Currency Futures as a trading, investing and hedging tool.The Reserve Bank of India (RBI) has permitted the...
    461 Words | 2 Pages
  • Futures Market - 1562 Words
    In the futures markets, there is no assurance that a liquid market may exist for offsetting a commodity contract at all times. Some future contracts and specific delivery months tend to have increasingly more trading activity and have higher liquidity than others. The most useful indicators of liquidity for these contracts are the trading volume and open interest. There is also dark liquidity, referring to transactions that occur off-exchange and are therefore not visible to investors until...
    1,562 Words | 5 Pages
  • Eurodollar Futures - 308 Words
    Eurodollar Futures • A Eurodollar is a dollar deposited in a bank outside the United States • Eurodollar futures are futures on the 3-month Eurodollar deposit rate (same as 3-month LIBOR rate) • One contract is on the rate earned on $1 million • A change of one basis point or 0.01 in a Eurodollar futures quote corresponds to a contract price change of $25 • A Eurodollar futures contract is settled in cash • When it expires (on the third Wednesday of the delivery month) the final...
    308 Words | 1 Page
  • A Study on Futures and Potions - 7289 Words
    A STUDY ON FUTURES AND POTIONS Project submitted in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION DECLARATION I hereby declare that this Project Report titled, “A STUDY ON THE DERIVATIVES” submitted by me to the Department OF BUSINESS ADMINISTRATION, XXXX and is a bonafide work under taken...
    7,289 Words | 37 Pages
  • Oil Futures - India - 265 Words
    Oil Futures Market in India There are primarily 3 major exchanges present in India * Multi Commodity Exchange of India Ltd (MCX) * India's No. 1 commodity exchange (85% Market share), 3rd largest in world in crude oil trades * Turnover of over Rs 90 Lakh Crore, daily turnover of Rs 10,000 crore in crude alone * National Commodity and Derivative Exchange (NCDEX) * Ranked number 32nd in 2010 in the Futures Industry Association's global list of top 53 derivatives...
    265 Words | 1 Page
  • Hedging Strategies Using Futures
    Hedging Strategies using Futures Introduction to Hedging Hedging refers to reducing risk. Let us take a simple example to understand hedging. A farmer expects to produce ‘X’ quantity of a commodity by the end of the cropping season say, October. He has to invest a certain amount of money today from his savings or maybe take a loan in expectation of returns he will get in October. But, he cannot accurately predict the prices he will get for his produce. A dip in prices could result in a loss. To...
    658 Words | 2 Pages
  • FRM interest rate future
    4. A treasurer of an American company in March realizes that it needs to raise $25 million zero-coupon bond in August for a period of 6 months. Zero-coupon bond of similar quality is currently yielding 4%, a cost, which the treasurer finds acceptabl(e) The treasurer is of the view that interest rate will rise before the company will issue the debt, hence will increase the cost of debt. So to hedge the interest rate risk the treasurer decided to hedge the risk using September Eurodollar futures...
    289 Words | 2 Pages
  • hedging using futures - 1000 Words
    1 Hedging Strategies Using Futures Chapter 3 2 Long & Short Hedges • A long futures hedge is appropriate when you know you will purchase an asset in the future and want to lock in the price • A short futures hedge is appropriate when you know you will sell an asset in the future & want to lock in the price • A short hedge is also appropriate if you currently own the asset and want to be protected against price fluctuations 3 Arguments in Favor of Hedging • Companies...
    1,000 Words | 11 Pages
  • Project on Future Hedging - 14278 Words
    A STUDY ON DERIVATIVES MARKET“OPERATIONS AND APPLICATION OF HEDGING STRATEGIES FOR FUTUER” FROM INDIABULLS HYDERABAD A PROJECT REPORT SUBMITTED TO HYDERABAD IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE IN MASTER OF BUSINESS ADMINISTRATION SUBMITED PRASHANT MAHESHWARI ICBM-SBE (HYDERABAD) 2011-2013 DECLARATION I PRASHANT MAHESHWARI student of ICBM-SBE COLLEGE have completed the project on “DERIVATIVES MARKET OPERATIONS AND...
    14,278 Words | 42 Pages
  • Financial Derivatives and the Future Market
    INTRODUCTION Due to the wave of globalization and liberalization, multiple growth in the volume of international trade and business is recorded all over the world. As a result , the demand for the international money and finance instruments increased significantly at the global level. Changes in stock market prices, interest rate and exchange rates at the different financial market have increased the financial risk to the corporate world. In order to manage to such risks, the new financial...
    8,376 Words | 25 Pages
  • Currency Futures and Option Markets
    CHAPTER 7: CURRENCY FUTURES AND OPTION MARKETS 7.1 FUTURE CONTRACTS 7.1.1 Definition of future contract–> contracts written requiring a standard quantity of an available currency at a fixed exchange rate and at a set delivery date. A future contract is defined as a contractual agreement to buy or sell an asset at a pre-determined price in the future. The contracts detail the quality and quantity of the underlying asset. Background of currency futures in 1972: Chicago Mercantile Exchange...
    1,261 Words | 5 Pages
  • Options & Futures Market - 11931 Words
    Corporate Finance Problems and prospects of future contracts and options. Acknowledgement While doing this assingment we were lucky to have some assisstance from different personnels. At first we wan to mention about our honorable course instr-uctor Md. Omar Faruque. He helped us by providing a proper guideline on how to prepare this assingment. He also encouraged us to prepared the assingment in a timely and efficient manner. Now we want to mention some other persons contribution....
    11,931 Words | 33 Pages
  • Foreign Currency Futures and Options
    Compare and contrast foreign currency futures and options. Identify situations where you may choose one or the other. When Barings Bank, the oldest merchant bank in London, collapsed in 1995 after one of the bank’s employees lost £827 million due to speculative investing, primarily in futures contracts, it illustrated the extreme danger and volatility of derivatives. Options and futures can be used to eliminate, reduce, hedge and manage risk, but can also be highly speculative. Foreign...
    1,723 Words | 6 Pages
  • Forward Futures Options - 1487 Words
     Forward, Futures, & Options Heather L. Dirgo BUS450: International Finance Instructor Kristian Morales September 29, 2014 Forward, Futures, & Options Fundamentally, forward and futures abridge have the same function: each symbol of contracts allow people to buy or sell a particular type of asset at a particular time at a given price. However, it is in the specific details that these contracts differ. First, futures contracts are exchange-traded and, therefore, are...
    1,487 Words | 5 Pages
  • Tutorial Futures and Option - Answer
    1. As an option writer, what is the best option to take when you forecast the market to be bullish? Sketch the profit/loss diagram and determine the in the money, out of the money and at the money. 2. The call option of Diamond Bhd stock has a striking price of RM30 and a cost of option RM2 per share with one month expiration date. The current market price of share is RM26. If you buy 3 lots (1 lots = 100 shares) of shares, calculate the profits or losses at the expiration date for each of...
    716 Words | 3 Pages
  • Wheat Future Prices - 1553 Words
    A futures contract is a standardized contract that is traded on a futures market. Traders buy and sell futures contracts with either of two intentions. There are individuals that are considered a hedger, such as farmers, assemblers, agricultural input suppliers and so on. A hedger is someone who wants to avoid or at least minimize price risk at all costs (Cheney, 2012). There are also people that are considered a speculator. Recently I have become a speculator within the wheat futures market....
    1,553 Words | 4 Pages
  • Commodities Futures and Inflation - 1990 Words
    ABSTRACT Indian markets recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities are the best option. They provide risk management facility. However, India, under pressure to cool inflation running near two-year highs, banned new wheat and rice futures contracts in its fledgling exchanges in February in a bid to check speculation and hopefully tame...
    1,990 Words | 7 Pages
  • Role of Warehouse in Future Market
    INTRODUCTION Among the investment avenues, commodity futures trading is a fast growing sector with huge untapped potential, along with the financial markets. The major difference between commodity and financial markets is that, in commodities futures physical delivery takes place where as in the capital market it does not. In these markets, there are farmers, industrialists, warehouses, consumers, dealers and traders, who buy and sell commodities. There are warehouses, which stores...
    1,163 Words | 4 Pages
  • Fundamentals of Futures and Options Markets
    Fundamentals of Futures and Options Markets, 8e (Hull) Chapter 1 Introduction 1) A one-year forward contract is an agreement where A) One side has the right to buy an asset for a certain price in one year's time B) One side has the obligation to buy an asset for a certain price in one year's time C) One side has the obligation to buy an asset for a certain price at some time during the next year D) One side has the obligation to buy an asset for the market price in one year's time...
    3,243 Words | 14 Pages
  • The Usage of CPO Futures - 937 Words
    The usage of CPO futures Major group of users of CPO futures who are corporate users, institutional investors and individual investors used the CPO futures as a tool to hedge against a price increase or decline in palm oil or other close substitutes, such as soya or rapeseed oil in near future. CPO futures are also used as an alternative for holding physical palm oil until it is required in the physical market and they are traded in a directional market movement by buying low or selling...
    937 Words | 3 Pages
  • Programming Language and Future Career
    Career-related discussions are something that my dad and I tend to have on the weekly basis, and have increased since changing my major to Management Information Systems last year. Our latest discussion was on the phone about word choice and the do’s and don’ts when writing/typing papers and other documents, moving forward in college as well as in my future career. What sparked up this conversation though was my dissatisfaction with a comment I got on a paper from a peer review. The comment...
    396 Words | 1 Page
  • My Future Husband - 401 Words
    My perfect future husband I am allergic to honey. It gives me a headache. My future husband has to know this. That will bring him one step closer to being perfect. He must also have a head of full of hair and be a foot taller than myself. That really should not be a problem. He also needs to be fit and healthy with a trim body as proof. He must also be very successful at his career whatever that may be as long as he is not policeman, a fireman, a lawyer, an accountant, a dentist, a surgeon,...
    401 Words | 2 Pages
  • Project on Futures and Options - 789 Words
    PROJECT REPORT ON “TRADING & CLEARING MECHANISM & REGULATORY FRAMEWORK FOR FUTURES AND OPTIONS” SUBMITTED BY (10018, 10028, 10040, 10073) SUMITTED TO PROF. Dr SAMPADA KAPSE. PGDM PROGRAMME (YEAR: 2010-12) TOLANI INSTITUTE OF MANAGEMENT STUDIES ADIPUR Overview TRADING MECHANISM In Indian context the futures & options traded on NSE is called NEAT-F&O trading system. Entities involved in trading system are: 1. Trading members. 2. Clearing members. 3. Professional clearing...
    789 Words | 4 Pages
  • Why Option Is Better Than Future
    is baWhy Options Are Better Than Futures For Hedging Futures trading can be used for two main purposes; Speculation and Hedging. While most retail futures traders get involved in futures trading for the purpose of leveraged speculation, it cannot be forgotten that the true purpose of futures contracts is for the purpose of hedging. Hedging using futures is technique most professional money managers use for decades. However, there is one main problem with hedging using futures and that is...
    507 Words | 2 Pages
  • Market Survey on Commodities Future Trading
    An Industry Internship Project On COMMODITIES FURTURE TRADING WITH RESPECT TO GEOJIT COMTRADE LTD – MARKET SURVEY Done at CALICUT, KERALA Under the guidance of MRS. C. ANITHA RANI (Asst. Professor of Marketing Dept.) (Project Guide) Mr. CHACKO .C. VARGHEESE (Regional manager) (Corporate Guide) Submitted By: LAKSHMI.P.K Roll No: 20028 SIVA SIVANI INSTITUTE OF MANAGEMENT KOMPALLY, SECUNDERABAD ACKNOWLEDGEMENT First of all I would like to thank Geojit COMtrade Ltd, which is...
    15,296 Words | 64 Pages
  • Chapter 13 - Financial Futures Markets
    POINT/COUNTER-POINT: Has the Futures Market Created More Uncertainty for Stocks? POINT: Yes. Futures contracts encourage speculation on indexes. Thus, an entire market can be influenced by the trading of speculators. COUNTER-POINT: No. Futures contracts are commonly used to hedge portfolios, and therefore can reduce the effects of weak market conditions. Moreover, investing in stocks is just as speculative as taking a position in futures markets. WHO IS CORRECT? Use the Internet to...
    992 Words | 5 Pages
  • Chapter 2 Mechanics Of Futures Markets
    Chapter 2 Mechanics of Futures Markets 1 Outline Opening and Closing Futures Contracts The Specification of the Futures Contract Daily Settlement and Margins Futures price quotes Convergence of Futures Price to Spot Price Delivery Forward contracts vs Futures contracts Types of Traders 2.1 Opening and Closing out Futures Contracts Cash or Spot Market : The market for immediate delivery and payment Gas station, grocery store, department store, etc. SELLER BUYER Delivers Commodity...
    3,009 Words | 35 Pages
  • Fundamentals of Futures and Options Markets 7e
    http://helpyoustudy.info CHAPTER 1 Introduction Practice Questions Problem 1.8. Suppose you own 5,000 shares that are worth $25 each. How can put options be used to provide you with insurance against a decline in the value of your holding over the next four months? You should buy 50 put option contracts (each on 100 shares) with a strike price of $25 and an expiration date in four months. If at the end of four months the stock price proves to be less than $25, you can exercise the options...
    33,956 Words | 86 Pages
  • CH20 FUTURES MULTIPLE CHOICE PRACTICE
    Ch.20, Chapter 20: FUTURES Multiple Choice Questions 1. Spot markets are for immediate delivery. Forward prices are: a. b. c. d. The price agreed upon today for an asset for deferred delivery in the future. The price in the future for an asset delivered in the future. The price today for a forward price in the future. Based on current spot market prices. Ans: a Difficulty: Moderate Ref: An Overview of Futures Markets 2. A forward contract differs from a futures contract in that: a. b. c. d....
    1,406 Words | 17 Pages
  • The Evolution and the Impact of Currency Futures in India
    A STUDY ON “THE EVOLuTION AND THE IMPACT OF CURRENCY FUTURES IN INDIA” Dissertation submitted in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration Of Bangalore University Submitted by AMALJITH P M REG.NO- 08SLCM6004 Under the guidance of Ms. KALAVATHY K S THE OXFORD COLLEGE OF BUSINESS MANAGEMENT [pic] 4th Sector, HSR Layout, Bangalore-560102...
    19,358 Words | 64 Pages
  • Impact of Commodity Futures Trading on Volatility of Spot Prices
    “IMPACT OF SPOT PRICE ON TRADING VOLUME,TRADED VALUE & VOLATILITY OF DAILY SETTLEMENT PRICES OF CURRENCY FUTURE IN NSE & MCX-SX ” Shelly Singhal, Assistant Professor Maharaja Agrasen Institute of Management and Technology, Jagadhri, Haryana, India shelly2588@gmail.com, (M) +91-8950213125 GauravKamboj, Assistant Professor Maharaja Agrasen Institute of Management and Technology, Jagadhri, Haryana, India gaurav_bim@yahoo.co.in, (M) +91-9896005971 Abstract:It is almost two and a half...
    2,720 Words | 11 Pages
  • Forward and Futures Hedging, Spread, and Target Strategies
    CHAPTER 11: FORWARD AND FUTURES HEDGING, SPREAD, AND TARGET STRATEGIES END-OF-CHAPTER QUESTIONS AND PROBLEMS 1. (Short hedge and long hedge) Another type of hedge situation is faced when a party plans to purchase an asset at a later date, such as a bread maker. Fearing an increase in wheat prices, the bread maker would buy futures contracts. Then, if the price of wheat increases, the wheat futures price also will increase and produce a profit on the futures position. That profit will at...
    3,021 Words | 14 Pages
  • Who Is in the Futures Markets and How It Has Changed
    Who is in the Futures Market and How Has It Changed? Dec. 29 Who is in the Futures Market and How Has It Changed? A summary report of a study by James A. Baker III Institute for Public Policy Rice University. Office of OPEC Governor For enquires kindly contact Sammy AL Mehaid Sammy.mehaid@aramco.com 1 Who is in the Futures Market and How Has It Changed? Dec. 29 Introduction: Leading up to 2008, oil prices experienced a steady, upward trend. Then, in 2008 oil prices climbed to...
    2,431 Words | 8 Pages
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