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KIC000065 - 'Lcis’c 01C Pink prob interest Rate Futures...

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Unformatted text preview: 'Lcis’c 01C Pink prob interest Rate Futures and Swaps FIN 327 Prof. Hood :— ...e. .-L...... L...» -_.J. Futures Definition - A contract where a buyer and seller agree to make delivery of something at a specified price at the end of a designated time period. You can either buy a futures contract, where you are long or sell the futures contract where you are short. Settle or Liquidate The date where the traction occurs is the settlement date or delivery date. - Some contracts are physical delivery and some are $511 settled. . It is possible to liquidate a position byjust taking an offsetting position in the same contract. if things have changed since you opened Ihe position. there will be a profit or loss. 111: Clearinghouse grantees thatthe other counterpartywiil pay up by acting as the intermediary. This fidlihtfi early liquidation as well. . - Ana-{tr‘wvrefit rWWW-r—W ’ . 95-May mm....nu e ...
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