Title

A Survey on Physical Delivery Versus Cash Settlement in Futures Contracts

Publication Type

Journal Article

Publication Date

2006

Abstract

A futures contract may adopt physical delivery or cash settlement to liquidate open positions after the maturity day. While traditionally physical delivery specification is favored, exchanges have recently turned to examine cash settlement possibilities. This paper summarizes current literature on settlement specifications with emphases on market manipulation, cash index construction, and hedging effectiveness comparisons.

Keywords

Futures contract; Physical delivery; Cash settlement; Market manipulation; Cash index construction;

Discipline

Finance

Research Areas

Econometrics

Publication

International Review of Economics and Finance

Volume

15

Issue

1

First Page

15

Last Page

29

ISSN

1059-0560

Identifier

10.1016/j.iref.2004.08.001

Publisher

Elsevier

Additional URL

http://dx.doi.org/10.1016/j.iref.2004.08.001

This document is currently not available here.

Share

COinS