|
|
| Line 1: |
Line 1: |
| Single-stock Futures (SSFs)
| | Yesterday I woke up and realized - I have been solitary for some time at the moment and following much bullying from friends I now locate myself signed-up for internet dating. They guaranteed me that there are a lot of sweet, normal and fun folks to meet up, therefore here goes the message!<br>My friends and household are wonderful and hanging out together at tavern gigabytes or dinners is consistently vital. As I come to realize that you can do not get a decent dialog using the sound I haven't ever been in to cabarets. I additionally luke bryan upcoming concerts ([http://lukebryantickets.omarfoundation.org http://lukebryantickets.omarfoundation.org]) got 2 unquestionably cheeky and quite cunning dogs who are always keen to meet up fresh people.<br>I try to maintain as physically fit as luke bryan is from where - [http://www.netpaw.org made my day], possible being at the gymnasium several-times per week. I enjoy my athletics and try to play or watch because many a possible. Being winter I will regularly at Hawthorn matches. Notice: I cheap tickets for luke bryan ([http://www.ladyhawkshockey.org http://www.ladyhawkshockey.org]) have seen the carnage of fumbling matches at stocktake revenue, Supposing that you will contemplated shopping an [http://pinterest.com/search/pins/?q=athletics+I athletics I] don't brain.<br><br>my site: luke [http://lukebryantickets.sgs-suparco.org luke bryan tickets for sale] bryan concert videos ([http://www.ffpjp24.org ffpjp24.org]) |
| | |
| In finance, a single-stock future is a type of [[futures contracts]] between two parties to exchange a specified number of stocks in a company for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange. The party agreeing to take delivery of the underlying stock in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to deliver the stock in the future, the "seller" of the contract, is said to be "short". The terminology reflects the expectations of the parties - the buyer hopes or expects that the stock price is going to increase, while the seller hopes or expects that it will decrease. Note that the contract itself costs nothing to enter; the buy/sell terminology is a linguistic convenience reflecting the position each party is taking (long or short).
| |
| | |
| SSFs are usually traded in increments/lots/batches of 100. When purchased, no transmission of share rights or dividends occurs. Being futures contracts they are traded on margin, thus offering leverage, and they are not subject to the [[Short (finance)|short selling]] limitations that stocks are subjected to. They are traded in various financial markets, including those of the United States, United Kingdom, Spain, India and others. South Africa currently hosts the largest single-stock futures market in the world, trading on average 700,000 contracts daily.<ref>http://www.moneyweb.co.za/mw/view/mw/en/page55?oid=146653&sn=Detail</ref>
| |
| | |
| ==SSFs in the U.S.==
| |
| In the United States, they were disallowed from any exchange listing in the 1980s because the [[Commodity Futures Trading Commission]] and the [[U.S. Securities and Exchange Commission]] were unable to decide which would have the regulatory authority over these products.<ref>http://www.cftc.gov/ucm/groups/public/@swaps/documents/file/hrep97-565.pdf</ref>
| |
| | |
| After the [[Commodity Futures Modernization Act of 2000]] became law, the two agencies eventually agreed on a jurisdiction-sharing plan and SSF's began trading on November 8, 2002.
| |
| | |
| Two new exchanges initially offered ''security futures'' products, including single-stock futures, although one of these exchanges has since closed. The remaining market is known as [[OneChicago, LLC|OneChicago]], a joint venture of three previously-existing [[Chicago]]-based exchanges, the [[Chicago Board Options Exchange]], [[Chicago Mercantile Exchange]] and the [[Chicago Board of Trade]]. In 2006, the brokerage firm [[Interactive Brokers]] made an equity investment in [[OneChicago, LLC|OneChicago]] and is now a part-owner of the exchange.<ref>http://www.onechicago.com/wp-content/uploads/content2010/OneChicago%20Fact%20Sheet%20_2_.pdf</ref>
| |
| | |
| ==Pricing==
| |
| Single stock futures values are priced by the market in accordance with the standard theoretical pricing model for forward and futures contracts, which is:
| |
| | |
| :<math>F = [S - PV(Div)] \cdot (1 + r)^{(T-t)} \ </math>
| |
| where F is the current (time t) cost of establishing a futures contract, S is the current price (spot price) of the underlying stock, r is the annualized [[risk-free interest rate]], PV(Div) is the present value of an expected dividend, t is the present time, and T is the time when the contract expires.
| |
| | |
| When the risk-free rate is expressed as a continuous return, the contract price is:
| |
| | |
| :<math>F = [S - PV(Div)] \cdot e^{r \cdot (T-t)} \ </math>
| |
| | |
| where S is the stock price, PV(Div) is the [[Present value]] of any dividends generated by the underlying stock between T and t, r is the risk free rate expressed as a continuous return, and e is the base of the natural log. Note the value of r will be slightly different in the two equations. The relationship between continuous returns and annualized returns is r<sub>c</sub> = ln(1 + r).<ref>http://www.onechicago.com/?p=677</ref>
| |
| | |
| | |
| The value of a futures contract is zero at the moment it is established, but changes thereafter until time T, at which point its value equals S<sub>T</sub> - F<sub>t</sub>, i.e., the current cost of the stock minus the originally established cost of the futures contract.
| |
| | |
| == See also ==
| |
| * [[OneChicago, LLC]]
| |
| * [[Commodity Futures Trading Commission]]
| |
| | |
| ==References==
| |
| <references/> | |
| | |
| == External links ==
| |
| *[http://www.onechicago.com OneChicago - The Single Stock Futures Exchange]
| |
| *[http://cftc.gov/ Commodity Futures Trading Commission] - the main federal agency that regulates futures and the exchanges in the United States.
| |
| *[http://www.slideshare.net/thalikias/securities-lending-times-article-20120515-th Saratoga Capital Market Commentary]
| |
| | |
| {{derivatives market}}
| |
| [[Category:Derivatives (finance)]]
| |
Yesterday I woke up and realized - I have been solitary for some time at the moment and following much bullying from friends I now locate myself signed-up for internet dating. They guaranteed me that there are a lot of sweet, normal and fun folks to meet up, therefore here goes the message!
My friends and household are wonderful and hanging out together at tavern gigabytes or dinners is consistently vital. As I come to realize that you can do not get a decent dialog using the sound I haven't ever been in to cabarets. I additionally luke bryan upcoming concerts (http://lukebryantickets.omarfoundation.org) got 2 unquestionably cheeky and quite cunning dogs who are always keen to meet up fresh people.
I try to maintain as physically fit as luke bryan is from where - made my day, possible being at the gymnasium several-times per week. I enjoy my athletics and try to play or watch because many a possible. Being winter I will regularly at Hawthorn matches. Notice: I cheap tickets for luke bryan (http://www.ladyhawkshockey.org) have seen the carnage of fumbling matches at stocktake revenue, Supposing that you will contemplated shopping an athletics I don't brain.
my site: luke luke bryan tickets for sale bryan concert videos (ffpjp24.org)