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how do options on futures differ from options on the asset underlying the futures the open interest in a futures
list and briefly explain the important contributions provided by futures exchanges how do locals differ from
what factors would determine whether a particular strategy is a hedge or a speculative strategy how are spread and
what are the various ways in which an individual may obtain the right to go on to the floor of an exchange and trade
explain the differences among the three means of terminating a futures contract an offsetting trade cash settlement and
suppose that you buy a stock index futures contract at the opening price of 45225 on july 1 the multiplier on the
the crude oil futures contract on the new york mercantile exchange covers 1000 barrels of crude oil the contract is
what is the objective of an industry self-regulatory organization compare and contrast three types of futures trading
why is the value of a futures or forward contract at the time it is purchased equal to zero contrast this with the
if futures prices are less than spot prices the explanation usually given is the convenience yield explain what the
on july 10 a farmer observes that the spot price of corn is 2735 per bushel and the september futures price is 276 the
describe two problems in using the black option on futures pricing model for pricing options on eurodollar futures
assume that there is a forward market for a commodity the forward price of the commodity is 45 the contract expires in
explain the relationship between carry arbitrage and the implied repo rate define the conversion factor why are us
explain the implied repo rate on a us treasury bond futures spread position identify two ways to express interest rate
explain how the repurchase agreement plays a role in the pricing of futures contracts what is the implied repo rate
use the following data from january 31 of a particular year for a group of march 480 options on futures contracts to
on september 12 a stock index futures contract was at 42370 the december 400 call was at 2625 and the put was at 325
suppose there is a commodity in which the expected future spot price is 60 to induce investors to buy futures contracts
on september 26 the spot price of wheat was 35225 per bushel and the price of a december wheat futures was 364 per
on a particular day the september sampp 500 stock index futures was priced at 96050 the sampp 500 index was at 95649
assume a standard deviation of 8 percent and use the black model to determine if the call option in problem 18 is
1 identify and define three versions of put-call parity2using the black-scholes-merton option pricing model and the
concept problem suppose that there is a futures contract on a portfolio of stocks that currently are worth 100 the
a corporate cash manager who often invests her firms excess cash in the eurodollar market is considering the