Publication Type

Journal Article

Version

Preprint

Publication Date

1-2006

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

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

https://doi.org/10.1016/j.iref.2004.08.001

Included in

Finance Commons

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