22 - 8/9/2011 Chapter 22 22 Futures Markets Today: Chapter...

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8/9/2011 1 Chapter 22 Futures Markets Today: Chapter 22 – Forwards and Futures Thursday: Study Day Online Office Hours Wednesday: 4:30 – 4:30 pm EST, 7:00 – 7:45 pm EST Thursday: 10:00 – 11:00 pm EST Futures Markets The futures contract calls for delivery of a commodity at a specified delivery or maturity date, for an agreed-upon price (futures price), to be paid at contract maturity. The futures price is set such that the contract has an initial value of $0.
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8/9/2011 2 Futures Markets Forward and Futures Markets Forward Contract Futures Contract Private contract between two parties Traded on an exchange Not standardized Standardized contract Usually one specified delivery date Range of delivery dates Settled at end of contract Settled daily (Marking-to-market) Delivery or final cash settlement usually takes place Contract is usually closed out prior to
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This note was uploaded on 02/02/2012 for the course ECON 442 taught by Professor Grahamlemke during the Spring '11 term at Binghamton University.

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22 - 8/9/2011 Chapter 22 22 Futures Markets Today: Chapter...

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