utures contracts in Government National Mortgage Association (GNMA) F passthrough certificates were introduced on the Chicago Board of Trade (CBT) in 1975. Two types of contracts exist. The GNMA Collateralized Depository Receipt (CDR) future delivery vehicle is a CDR backed by GNMA certificates. The
Futures contract delivery procedures
โ Scribed by Schneier, Lance W. ;Morsches, Gary J.
- Publisher
- John Wiley and Sons
- Year
- 2008
- Weight
- 287 KB
- Volume
- 7
- Category
- Article
- ISSN
- 0743-5665
No coin nor oath required. For personal study only.
๐ SIMILAR VOLUMES
utures and options allow a variety of trading strategies. Traders can use them F singly or in combinations to hedge spot positions, speculate on price movements, or establish indirect investments in underlying assets. To price futures and options, it is easiest to avoid trading motives and concentra
irtually all futures contracts provide sellers with various delivery options to ease their concerns of possible long squeezes as maturity dates near. With the exception of Livingston (1987), the literature seems to conclude delivery options have a nonzero value. (
rity or call. As of this writing, there are over 20-issues "good" for delivery. Typically, however, only a handful of these issues are actually delivered during a particular contract month. In fact, on any given date, deliveries tend to be dominated by a single issue. These circumstances may be att
n a recent article, Lien (1989(b)) shows that within a mean-variance framework the I optimal futures contract for a commodity with various grades is a conventional cash settlement contract that dictates the futures price as a linear combination of various cash prices (at maturity) such that the weig