2.6 Other Key points about Futures They are settled daily Closing ou(平仓) a futures position involves entering into an offsetting(反向) trade Most contracts are closed out before maturity Options, Futures, and Other Derivatives, 4th edition g 2000 by John C Hull Tang Yincai, C 2005
2.6 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2005 Other Key Points About Futures • They are settled daily • Closing out(平仓) a futures position involves entering into an offsetting(反向) trade • Most contracts are closed out before maturity
2.7 D elivery If a contract is not closed out before maturity, it usually settled by delivering the assets underlying the contract. When there are alternatives about what is delivered where it is delivered. and when it is delivered the party with the short position chooses A few contracts(for example, those on stock indices and Eurodollars) are settled in cash Options, Futures, and Other Derivatives, 4th edition g 2000 by John C Hull Tang Yincai, C 2005
2.7 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2005 Delivery • If a contract is not closed out before maturity, it usually settled by delivering the assets underlying the contract. When there are alternatives about what is delivered, where it is delivered, and when it is delivered, the party with the short position chooses. • A few contracts (for example, those on stock indices and Eurodollars) are settled in cash
28 Some Terminologies Open interest(未平仓合约数): the total number of contracts outstanding equal to number of long positions or number of short positions Settlement price(结算价格): the price just before the final bell each day used for the daily settlement process Volume of trading(交易量): the number of trades in 1 day Options, Futures, and Other Derivatives, 4th edition g 2000 by John C Hull Tang Yincai, C 2005
2.8 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2005 Some Terminologies • Open interest(未平仓合约数): the total number of contracts outstanding – equal to number of long positions or number of short positions • Settlement price(结算价格): the price just before the final bell each day – used for the daily settlement process • Volume of trading(交易量): the number of trades in 1 day