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21 Resources for

chicago mercantile exchange holdings

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Basic Strategies for Managing U.S. Dollar/Brazilian Real Exchange Rate Risk for Dollar-Denominated Investors: Brazilian Real futures and options on futures offer a host of risk management strategies appropriate for those firms and individuals whose profit depends on the dollar/Real exchange rate. In their most basic use, these exchange traded tools permit one to lock up a prospective exchange rate or, alternatively, to protect...; Tags: Free trade, Chicago Mercantile Exchange Inc., exchange rate, investor, risk management, asset, tool; White papers 2003-05-01
Comparing Futures and Forwards for Managing Currency Exposures: For internationally oriented firms that choose to immunize themselves from the effects of fluctuating exchange rates, either of two financial instruments could be selected to satisfy the requirement: currency forward contracts or currency futures. Both tools lock in prospective exchange rates, thereby eliminating both risk and opportunity-whether in connection with...; Tags: Free trade, Financial accounting, Chicago Mercantile Exchange Inc., exchange rate, financial instrument, financial, tool; White papers 2003-04-01
Eurodollar Bundles and Packs: Right from their introduction in September 1994, Eurodollar bundles have proven to be a powerful and convenient tool for those who deal in strips of ED futures contracts. Since then, the original bundle concept has been expanded to include 1-, 2-, 3-, 4-, 5-, 6-, 7-, 8-, 9-, 10-year and...; Tags: PRODUCTIVITY, Chicago Mercantile Exchange Inc., tool; White papers 2003-01-01
Lumber Hedging: Technical Analysis And Risk Management: Cash lumber prices are often unpredictable and volatile. In recent years, domestic lumber supplies have been constrained due to mill closings, the spotted owl controversy and other environmental concerns. Price, the final arbiter for these and a host of other factors, must react to supply and demand imbalances with frequent...; Tags: Strategy, Chicago Mercantile Exchange Inc., risk management, analysis, industry; White papers 2003-01-01
Weather Risk Management: This article discusses methods of hedging with over-the-counter weather derivatives - specifically, Heating Degree Day (HDD) swaps and options. The examples used in this paper cite hypothetical over-the-counter derivative strategies used by the management of the fictitious firm, the "Frozen Falls Fuel Company." The company is a family business founded...; Tags: Financial services, Chicago Mercantile Exchange Inc., capital market, risk management, strategy; White papers 2003-01-01

Introduction To Lumber Options: Basic economic uncertainty and price volatility represent both opportunities and risks for firms involved in the lumber industry. Since 1969, companies and individuals engaged in producing, processing and marketing lumber products have been able to reduce their price risk by hedging with the Chicago Mercantile Exchange's Random Length Lumber futures....; Tags: Chicago Mercantile Exchange Inc., volatility, trader, strategy, industry, marketing, tool; White papers 2003-01-01
Option Terminology: The Chicago Mercantile Exchange offers the most comprehensive livestock risk management tool ever developed—options on live cattle, feeder cattle and lean hog futures. Producers can establish a floor price for the livestock they buy, and a ceiling for it as well, without giving up profit opportunity. This article is an...; Tags: Chicago Mercantile Exchange Inc., livestock, risk management, strategy, marketing; White papers 2003-01-01
Eurodollar/Euroyen Interest Rate Spreads vs.Japanese Yen Futures Calendar Spreads: The article explains that trading eurodollar/euroyen interest rate futures against JY futures calendar spreads is some what complicated in that it requires a coordinated response to a dynamic set of underlying conditions. Nonetheless, because the trade is based on arbitrage pricing theory, it has the advantage of being a relatively...; Tags: Financial Planning, Financial services, Chicago Mercantile Exchange Inc., interest rate, arbitrage, theory, strategy; White papers 2003-01-01
Price Liverstocks: This is an introduction to the mechanics of using futures to froward prices livestock. The booklet presents thirteen short units of study to help one become comfortable with the futures market and how one can use it. The question this article tries to address is why learn about futures and...; Tags: Chicago Mercantile Exchange Inc., livestock, marketing; White papers 2003-01-01
Using Currency Futures to Hedge Currency Risk: During periods of intense market risk, issues related to hedging different risk factors become critical. This paper has focused on currency risks. It started with a complete definition of currency effect on foreign portfolio returns, and argued in favor of protecting against this risk. The main benefit of a full...; Tags: Chicago Mercantile Exchange Inc., equity, benefit; White papers 2003-01-01
Using S&P 500 Stock Index Futures and Options: Stock price index futures and options are contracts that allow you to effectively buy or sell an extremely well-diversified portfolio of stocks. They are also opportunities, chances to make investment decisions based on your opinion of the overall stock market. Stock index futures and options are powerful and versatile instruments,...; Tags: Investment, Financial accounting, Chicago Mercantile Exchange Inc., S&P 500, stock, stock market, stock price, benefit; White papers 2003-01-01
Introduction To Weather Derivatives: The first transaction in the weather derivatives market took place in 1997. Since that time, the market has expanded rapidly into a flourishing over the counter (OTC) market. Further growth in the end-user sector is somewhat limited by the credit issues associated with an OTC market. To increase the size...; Tags: Chicago Mercantile Exchange Inc., derivatives, pricing strategy, hard drive; White papers 2003-01-01
Picking Your Spots on the ED Strip: A Graphical Guide to “Quick and Dirty” Hedging For Treasury Notes: The objective in this study is to identify those one-shot transactional devices in the ED strip – bundles, packs, or individual contracts – that afford the greatest, most reliable short-term price protection for on-the-run Treasury notes. Operationally, “greatest” means those ED futures packages whose price changes are most highly correlated...; Tags: Chicago Mercantile Exchange Inc., expiration, environment; White papers 2003-01-01
Introduction To Livestock And Meat Fundamentals: Before entering into the futures and options markets, the market participant must gain an understanding of the underlying markets in which each opts to trade. This article provides the market participant with basic information regarding the cattle and hogs industries as well as offers a fundamental economic framework for analyzing...; Tags: Chicago Mercantile Exchange Inc., trader, analysis, knowledge, technique, benefit, industry; White papers 2003-01-01
Index Arbitrage and Stock Price Volatility: This paper examines a particular type of financial derivative -- stock index futures contracts. Specifically, it discusses how these contracts are used to trade between the spot and futures markets for stocks and the claim that the prices of stock shares (the instruments underlying this derivative) have become more volatile...; Tags: Investment, Financial accounting, Chicago Mercantile Exchange Inc., arbitrage, stock, stock price, financial; White papers 2003-01-01
Determining the Relevant Fair Value(s) of S&P 500 Futures: A fundamental consideration for potential users of stock index futures is the determination of the futures’ break-even price or fair value. Conceptually, being able to sell futures at prices above the break-even or buy futures at prices below the break-even offers opportunity for incremental gain. This article points out an...; Tags: Financial services, Investment, Chicago Mercantile Exchange Inc., equity, arbitrage, S&P 500, motivation; White papers 2003-01-01
The Development of Livestock Futures: The futures markets arose from the needs of producers and merchants to secure fixed prices and facilitate trade. During the mid-1800s, the needs of American farmers, merchants and millers gave rise to forward contracts for wheat and corn raised in the mid west farmlands for shipment by water and rail...; Tags: Chicago Mercantile Exchange Inc.; White papers 2002-02-07
Strips: Arbitraging the Eurodollar Cash and Futures Markets: The article emphasizes that one of the most significant uses of contracts has been by arbitrageurs in the money markets that often combine cash and futures positions to create a synthetic instrument called a “strip.” Many of the trades in the quarterly Eurodollar futures contracts are devoted to these strategies....; Tags: Chicago Mercantile Exchange Inc., trader, interest rate, strategy; White papers 2001-06-01
New EU Regulations to Have Significant Impact on Financial Services Firms: The Investment Services Directive ("ISD") and the Capital Adequacy Directive ("CAD") came into force on 1st January 1996 and all EU Member States are required to have brought in compliant local legislation by that date. In future all investment firms conducting relevant financial services activities will need to be authorized...; Tags: Chicago Mercantile Exchange Inc., financial, financial service, monitor; White papers 2001-05-02
Futures And Options Trading For Hedge Funds: The Regulatory Environment: Futures and options on futures can provide attractive investment opportunities for hedge funds. These funds employ numerous strategies using the futures and options markets, including traditional hedging, overlay and income enhancement. In fact, hedge funds have become an influential force in the currency and fixed income markets and is the...; Tags: Investment, Financial services, Chicago Mercantile Exchange Inc., investment strategy, hedge fund, fixed income, income, foreign-exchange, liquidity, strategy, financial, benefit, environment, tool; White papers 2001-05-03