Chapter 5 The Variety of Futures Markets 国际期货市场运作(英文 )教程文件.pptVIP

* Chapter 5The Variety of Futures Markets Even though the CBOT was established in 1848, a formal set of rules for trading futures contracts was not written until 1865, which is a more accurate date from which to mark the beginning of futures trading in the United States. CBOT Chicago Mercantile Exchange (CME) The CME was established in 1919. It traded futures in eggs, butter, cheese, potatoes, and onions until 1945. Proliferation of Futures Markets Futures and futures options trading has been growing steadily in volume yearly. This explosive growth has been a natural response to increased price volatility, international instability, growing consumer demand, and unstable global weather conditions. Hurricane Jeanne Satellite image (September 26, 2004) shows Hurricane Jeanne as the once-powerful storm weakened to a tropical storm while inland in Florida. Hurricane Jeanne peeled off roofs, snapped power lines and left large swaths of coastline knee-deep in water Sunday as it plowed through parts of Florida. How do we develop a currency futures contract ? If I am an automobile distributor, and I place an order for 20 million dollars worth of German cars to be delivered three months, I face the risk that when I pay for the cars the value of the Euro, which I must use to pay the manufacturer, may have gone up in relationship to the dollar. In other words, when I order the cars, my U.S. dollar is worth a certain number of Euro, a value we will call X. How do we develop a currency futures contract ? In the event that the Euro has decreased against the U.S. dollar the opposite condition will hold true. How do we develop a currency futures contract ? How do we develop a currency futures contract ? The Euro might drop in value, meaning I could buy more Euro with U.S. dollars three months hence. An Overview of Market Sectors Foreign Currency Futures In order to hedge against fluctuations in currency relationships, a producer can use forei