Futures and options dissertation

As the world’s leading and most diverse derivatives marketplace, CME Group ( ) is where the world comes to manage risk. Through its exchanges, CME Group offers the widest range of global benchmark products across all major asset classes, including futures and options based on  interest rates ,  equity indexes ,  foreign exchange ,  energy ,  agricultural products  and  metals . CME Group provides electronic trading globally on its  CME Globex  platform. The company also offers clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives through CME Clearing . CME Group’s products and services ensure that businesses around the world can effectively manage risk and achieve growth.

What are the types of options?
These are two types of options — call and put. Call is the right but not the obligation to purchase the underlying asset at the specified price by paying a premium. The seller of a call option is obligated to sell the underlying asset at the specified strike price. Put is the right but not the obligation to sell the underlying asset at the specified price by paying a premium. However, the seller is obligated to buy the underlying asset at the specified strike price. Thus, in any options contract, the right to exercise the option is vested with the buyer of the contract. The seller only has the obligation. As the seller bears the obligation, he is paid a price known as the premium.

Steven began working at KIS Futures part-time during his high school and college years. In 2000 he received his . degree in Business Administration from Oral Roberts University in Tulsa, Oklahoma. That same year, Steven received his Series 3 Registration with KIS Futures. He worked in the KIS Futures Stockyards Branch Office specializing in Live Cattle and Feeder Cattle Hedging as well as executing Energy Futures and Options for large traders. After spending the last 8 years as an artist, singer/songwriter at a large Oklahoma City church, Steven returned to KIS Futures in 2009 working in office operations and executing trades. Currently, Steven holds his Series 3 License and executes futures and options trades on all major exchanges for KIS customers.
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An example that has both hedge and speculative notions involves a mutual fund or separately managed account whose investment objective is to track the performance of a stock index such as the S&P 500 stock index. The Portfolio manager often "equitizes" cash inflows in an easy and cost effective manner by investing in (opening long) S&P 500 stock index futures. This gains the portfolio exposure to the index which is consistent with the fund or account investment objective without having to buy an appropriate proportion of each of the individual 500 stocks just yet. This also preserves balanced diversification, maintains a higher degree of the percent of assets invested in the market and helps reduce tracking error in the performance of the fund/account. When it is economically feasible (an efficient amount of shares of every individual position within the fund or account can be purchased), the portfolio manager can close the contract and make purchases of each individual stock.

Futures and options dissertation

futures and options dissertation

An example that has both hedge and speculative notions involves a mutual fund or separately managed account whose investment objective is to track the performance of a stock index such as the S&P 500 stock index. The Portfolio manager often "equitizes" cash inflows in an easy and cost effective manner by investing in (opening long) S&P 500 stock index futures. This gains the portfolio exposure to the index which is consistent with the fund or account investment objective without having to buy an appropriate proportion of each of the individual 500 stocks just yet. This also preserves balanced diversification, maintains a higher degree of the percent of assets invested in the market and helps reduce tracking error in the performance of the fund/account. When it is economically feasible (an efficient amount of shares of every individual position within the fund or account can be purchased), the portfolio manager can close the contract and make purchases of each individual stock.

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