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A note on the design of commodity option contracts

✍ Scribed by Michael R. Asay

Publisher: John Wiley and Sons
Year: 1982
Tongue: English
Weight: 443 KB
Volume: 2
Category: Article
ISSN: 0270-7314
DOI: 10.1002/fut.3990020102

No coin nor oath required. For personal study only.

✦ Synopsis

A Futures Trading Commission is ready to consider seriously the buying and selling of commodity options on domestic futures exchanges. It is therefore useful to examine the desirable characteristics such options might possess, and that is the purpose of this article. First, the "standard" commodity option, as defined and analyzed by , is reviewed; and some unattractive analytic and operational features of this design are noted. Then an alternative design, which avoids these drawbacks, is proposed.

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