The Chicago Mercantile Exchange (CME) recently introduced serial futures contracts for live cattle. Essentially, this means contracts will be available for each month of the year. An obvious benefit of the additional contracts is a potential reduction in basis risk. In this paper, serial contracts are examined to determine their usefulness to hedgers. Then, basis levels and risk are examined.
Organization |
South Dakota State University Extension |
Publisher |
South Dakota State University |
Published |
April, 2003 |
Material Type |
Written Material |