Author: Howard Ray SartainPublisher:
ISBN:
Category :
Languages : en
Pages : 74
Book Description
A Framework to Predict Success and Failure of Futures Contracts for Agricultural Commodities
Author: Howard Ray SartainSuccess and Failure of Agricultural Futures Contracts, how to Best Predict Semivariance, and Garch Option Pricing with Implied Volatility
Author: Félix Fofana N'ZueSuccess and Failure of Agricultural Futures Contracts, how to Best Predict Semivariance, and GARCH Option Pricing with Implied Volatility
Author: Felix Fofana N'ZueSuccess and Failure of Agricultural Futures Contracts
Author: B. Wade BrorsenPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The objective of this study is to determine the factors contributing to the success or failure of agricultural futures contracts. Commodities with futures markets and without futures markets were selected and analyzed with respect to their product homogeneity, vertical integration, buyer concentration, activeness of their cash market, cash price variability, and size of their cash market. Homogeneity, vertical integration, buyer concentration, and activeness of the cash market were measured by the Delphi approach. An active cash market is a necessary condition for futures contract success. The structure of the marketing channel, the size of the cash market, the activeness of the cash market, the effectiveness of the grading system (homogeneity), liquidity cost, the ability of the own hedge market to bear more risk than the existing cross hedge market, and cash price variability are important in explaining differences in volume and open interest among existing futures markets. Results also suggest that none of the non-traded commodities considered is likely to have a successful contract if it were traded; since, none have an active cash market.
Why Some Commodity (and Financial) Futures Contracts Succeed and Others Fail
Author: Hilary TillPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Why do some futures contracts succeed and others fail? Although the U.S. futures markets have evolved in a trial-and-error fashion, a survey of relevant research suggests key elements have determined whether particular futures contracts succeeded or failed. This knowledge could be useful for new financial centers as they build successful futures markets. This paper shows that there are three elements that determine whether a futures contract succeeds or not:1. There must be a commercial need for hedging;2. A pool of speculators must be attracted to a market; and3. Public policy should not be too adverse to futures trading.
Determinants of a Successful Agricultural Futures Contract
Author: Roy J. JessupThe Success and Failure of Futures Contracts
Author: Peter M. BalnavesPublisher:
ISBN:
Category : Futures
Languages : en
Pages : 346
Book Description
SUCCESS AND FAILURE OF FUTURES CONTRACTS: THEORY AND EMPIRICAL EVIDENCE
Author: Deborah G. BLACKAgricultural Supply Chains and the Challenge of Price Risk
Author: John WilliamsPublisher: Routledge
ISBN: 1134058381
Category : Business & Economics
Languages : en
Pages : 316
Book Description
This book discusses the issues of integration within food and fibre supply chains and the challenges in managing price risk. The problems of integration and price risk are interwoven in agricultural supply chains with production and supply risk as well as hoarding. However, without supply chain integration through commercial trade markets there can be no forward market upon which forward transactions and the management of price risk can be based. Without a forward market that can reduce opportunistic behaviour, there is likely to be little security of supply, particularly under high production risk and price uncertainty. Whilst price risk management is possible under certain circumstances, there are many factors that can prevent the development of forward markets or cause them to collapse, thus undermining the ability to manage price risk within acceptable risk and return parameters. Market positions therefore need to be valued and often settled daily due to the risk of contract default. In addition, the issue of currency risk and its management applies to international market positions and transactional exposures. The book analyses a range of price risk management strategies from forward contracting through to futures and options hedging, and finally to over-the-counter products. Evaluation techniques are developed to aid decision-making. The author concludes that forward market development may be the exception rather than the norm, and that whilst favourable price risk management outcomes may be possible, they can sometimes be caused more by luck than through good management. It is shown how tactics are an important consideration in decision-making to minimize costs and losses.
Performance of Futures Markets
Author: Allen B. PaulPublisher:
ISBN:
Category : Potatoes
Languages : en
Pages : 186
Book Description