Ostrich Meat Future Contract
2. i) According to world – ostrich organization (http://www.world-ostrich.org/demand.htm), the current demand for ostrich meat is way far more than supply. Therefore, there will be a constantly increase in the price of ostrich meat. Investors are reluctant to take short positions of ostrich meat futures; however, there would be a lot of people willing to take long positions. Thus, the long positions will be in far excess of short …show more content…
3. i) The size of the contract can meet the different needs, which will allow it to succeed. On the one hand, $100,000 is not a big amount; it is affordable for those individual investors. On the other hand, if the institutional investors want to buy larger amount, they can buy more units of the contract. ii) The credit card receivable security future contract is a new kind of future contract. Most of the existing future contract is based on stock index or corporate bonds. This kind of future may help some investor to improve liquidity and can attract new investors in the financial market.
4. i) The type of the credit card receivable is not specified in the contract. The contract does not include where the receivable comes from or what kind