Traders look to manage CBOT options' basis risk.(Chicago Board of Trade): An article from: National Underwriter Property & Casualty-Risk & Benefits Management

This digital document is an article from National Underwriter Property & Casualty-Risk & Benefits Management, published by The National Underwriter Company on February 10, 1997. The length of the article is 1972 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Insurance companies can participate in basis risk, as they participate in other risk markets, with a change in perspective. Combining options and decreased levels of reinsurance coverage will enable insurance companies to participate in basis risk with the same transfer goals as traditional reinsurance programs. Basis risk arises from the price difference between a cash financial instrument being hedged and a futures instrument and the possibility that the price difference will not remain the same.

Citation Details
Title: Traders look to manage CBOT options' basis risk.(Chicago Board of Trade)
Author: Susanne Sclafane
Publication:National Underwriter Property & Casualty-Risk & Benefits Management (Magazine/Journal)
Date: February 10, 1997
Publisher: The National Underwriter Company
Issue: n6 Page: p7(3)

Distributed by Thomson Gale