Futures and Options Markets

  1. Hedging with Futures
    1. Hedging Principles
      1. Risk Identification
        1. Hedge Objectives
          1. Perfect vs Imperfect Hedges
          2. Basis Risk
            1. Definition and Sources
              1. Basis Convergence
                1. Basis Risk Management
                  1. Cross-Hedging Considerations
                  2. Short Hedging Strategies
                    1. Producer Hedging
                      1. Inventory Hedging
                        1. Mechanics and Payoffs
                          1. Timing Considerations
                          2. Long Hedging Strategies
                            1. Consumer Hedging
                              1. Input Cost Hedging
                                1. Mechanics and Payoffs
                                  1. Timing Considerations
                                  2. Hedge Ratio Determination
                                    1. Minimum Variance Hedge Ratio
                                      1. Regression-Based Calculations
                                        1. Dynamic Hedging
                                          1. Cross-Hedging Ratios
                                          2. Portfolio Hedging
                                            1. Stock Index Futures
                                              1. Beta Adjustment
                                                1. Portfolio Insurance Strategies
                                                  1. Hedge Effectiveness Measurement

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                                                4. Futures Pricing Theory

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                                                6. Types of Futures Contracts