Options on Futures Protect Prices, Enhance Returns
Article Abstract:
The option on Treasury bond futures is a new alternative to hedge investment portfolios. An options-on-futures contract provides flexibility, defines user risks and costs in advance, and increases income returns. Hedges using T-bond futures are compared to hedges using options on T-bond futures. Hedging by buying options entails knowing the cost which is fixed from the start of the transaction. Terminology common to options-on-futures markets is defined. The covered call writing strategy, which increases the amount of returns, is described.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1984
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The paper race: bank loan participations now give commercial paper a run for the money
Article Abstract:
Bank loan participation agreements (LPA) are a viable, short-term financing alternative to commercial paper. The two main advantages of LPA's are: specific maturities are guaranteed, and significant bank relationships can be maintained. Commercial paper and LPA's may be seen as two major elements of a short-term financing strategy, and the treasurer who combines the advantages of each can obtain the best from both markets. Interest rates, discount bases, and fee structures for LPA's and commercial paper are described.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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