What is an Equity Index Fund?
Stock refers to the rapid development of modern financial derivatives, its rapid development and its impact on the financial market is remarkable.
Stock index fund
Right!
- Chinese name
- Stock index fund
- Nature
- Futures Options
- Affiliation
- fund
- Field
- economic
- Stock refers to the rapid development of modern financial derivatives, its rapid development and its impact on the financial market is remarkable.
- Based on the experience of foreign financial developed countries, the timely introduction of appropriate stock index futures options products is not only to keep up with the needs of the times, but also an inevitable requirement for the development of China's financial market. Stock index futures options Stock index futures (Stock Index Futures), is a financial futures, using the stock market price index as the subject of financial futures; stock index options (Stock Index Options), also known as index options, it It is an option contract with stock index as the exercise type. They all use the stock index as the subject matter, which is divided into two types: wide and narrow. The wide index includes several companies in several industries, while the narrow index only covers several companies in one industry.
- Stock index derivatives emerged and developed in the 1980s. During the period from 1973 to 1974, the U.S. stock market experienced the worst crisis since World War II. The stock index plummeted and brought significant losses to investors. This made people realize that although according to modern investment (18.88, 0.13 (0.69%) combination theory, can build an effective investment portfolio to disperse non-systematic risks, but in this environment of stock market decline, the financial market lacks suitable hedging tools to avoid systemic changes caused by overall changes in stock prices risk. In this context, in October 1977, the Kansas Futures Exchange (KCBT) submitted a report on stock index futures trading to the US Commodity Futures Trading Commission (CFTC) and proposed to launch 30 Dow Jones industrial stock index futures. However, the Dow Jones Company considers this product to be a kind of gambling and strongly opposes it. In this case, KCBT was forced to switch to cooperate with Arnold Bernhard & Company to prepare to launch the company's Value Line Index futures. . The CFTC approved the KCBT report in 1982. In February of that year, KCBT launched the world's first stock index futures contract, the value line average index contract. After that, major US exchanges responded. The Chicago Mercantile Exchange (CME) subsequently launched the S & PS00 stock index futures; the New York Futures Exchange (NYBOT) also launched the NYSE Composite Index Futures. On the basis of stock index futures, the Chicago Mercantile Exchange (CME) launched the world's first stock index option in the following year, the S & P500 stock index futures option.
- There are mainly stock index futures prices, strike prices, stock index futures price volatility, time remaining until expiration, and risk-free interest rates. During the development of options, many models have been developed to calculate the value of options. Among them, the BS model is the most representative. However, because the model only provides a theoretical price reference, the actual process due to price volatility is different. And investors' bids will also differ from theoretical prices.