Futures和Options是金融市场中的两种常见衍生工具，用于管理风险和投机。Futures，即期货，是一种标准化的合约，买卖双方约定在未来的某个特定日期和价格交割一定数量的基础资产。这个基础资产可以是商品（如黄金、石油）、金融产品（如债券、汇率）或指数。期货市场为投资者提供了一个进行套期保值和投机交易的...
HedgingIn this paper, we compare the hedging effectiveness of currency futures vs. currency options on the basis of the lower partial moments (LPMs). The LPM measures an individual hedger's downside risk, as opposed to the two-sided risk measure. Two estimation methods are applied to estimate...
there is far more available to retail investors now at little or no cost. Your brokerage platform and other sites often provide free tools for calculating and working with stop losses, trailing stops, options for hedging, and position sizing. Take advantage of them. ...
Options and futuresare traded on the same market, except for the following differences: Margin:for futures trading both seller and buyer are charged margin (initial and variation), given it's obligation for both, but with options, holders usually pay their premiums up-front, and can not incur...
The hedge ratio is the ratio of the size of the position taken in futures contracts to the size of the exposure. When cross hedging is used, setting the hedge ratio equal to 1.0 is not always optimal. The hedger should choose a value for the hedge ratio that minimizes the......
outlook. Options on S&P 500 futures offer a cost-efficient way to gain exposure to the S&P 500 index. Buying an option requires a smaller initial investment than the margin needed for a futures contract. Traders can control the same amount of exposure with less capital, beneficial forhedging...
Currency hedging with options and futures - Wong - 2003 () Citation Context ...t for the models we develop in this thesis. Although there exist many empirical studies on the use of forward contracts to hedge the currency risk, the evidence for using options is not as much. Wong =-=[...
View FuturesView Options Download Description The ICE Low Sulphur Gasoil Futures Contract is designed to provide users with an effective hedging instrument and trading opportunities. The underlying physical market for Low Sulphur Gasoil is diesel barges delivered in the ARA (Amsterdam, Rotterdam, Antwer...
This paper considers the multiperiod hedging decision in a framework of mean-reverting spot prices and unbiased futures markets. The task is to determine the optimal hedging path, i.e., the sequence of positions in futures contracts with the objective of
Futures and futures options trading is provided by Charles Schwab Futures and Forex LLC. What are futures? Futures are a type of derivative contract agreement to buy or sell a specific commodity asset or security at a set future date for a set price. Learn more about thekey contract specifica...