Futures contracts

Do you have suggestions to help ensure consideration for future contracts ... 

If yes, are there any additional considerations for future contracts If changes be made to overcome these obstacles no, can... 

Lost opportunities - This category of quality cost is impossible to quantify accurately. It refers to the rejection of a company product due to a history of poor quality and service, hence the company is not invited to bid for future contracts because of a damaged reputation. 

A futures contract is an agreement that calls for a seller to deliver to a buyer a specified quantity and quality of an identified commodity, at a fixed time in the future, at a price agreed to when the contract is made. An option on a commodity futures contract gives the buyer of the option the right to convert the option into a futures contract. Energy futures and options contracts arc used by energy producers, petroleum refin-... 

Most futures contracts assume that actual delivery of the commodity can take place to fulfill the contract. However, some futures contracts require cash settlement instead of deliveiy. Futures contracts can be terminated by an offsetting transaction (i.e., an equal and opposite transaction to the one that opened the position) executed at any time prior to the contract s expiration. The vast majority of futures contracts are terminated by offset or a final cash payment rather than by physical delivery. 

A typical futures contract might call for the delivery of 1,()()(1 barrels (42,()00 U.S. gallons) of unleaded gasoline meeting defined specifications at petroleum product terminals in New York Flarbor during the... 

The London-based International Petroleum Exchange (IPE) is the second largest energy futures exchange in the world, listing futures contracts that represent the pricing benchmarks for two-thirds of the world s crude oil and the majority of middle distillate traded in Europe. IPE natural gas futures may also develop into an international benchmark as the European market develops larger sales volume. 

Futures Prices Natural gas futures contracts began trading on April 3, 1990, on the New York Mercantile Exchange (NYMEX). Sabine Pipe Line Company s Heniy Hub near Erath,... 

Patel (1995). Fuel Cell Chapter XIII of the volume Overview of Energy R D Options for a Sustainable Future. Contract JOU2-CT93-0280. European Commission DGXII. 

Recommendation 8. Future contracts should consider all aspects of performance, including (but not limited to) safety, cost, and schedule, in setting criteria for the award fee. 

Percentage of contracted firms that, based upon post-job evaluation, would be considered for future contracts X... 

US coal prices have increased somewhat due to rising transportation costs (Figure 2.6). However, the overall trend in coal prices as measured at the mine (mine mouth) is downward as coal producers continue to find ways to increase the productivity of the average mine. The average delivered price for utilities increased just 5.7% during 2004 (EIA 2004), but 13.2% for industrial users. The widespread use of futures contracts in the coal industry has helped to keep prices stable. The overall stability of coal prices likely also will lead to a renewed interest in coal by utility officials and others, who until recently, believed natural gas was the fuel of the future. Anecdotal evidence purports an increase in coal use at the residential level. Homeowners with access to delivered coal found it is possible to heat less expensively with coal than natural gas or oil in the 2005-2006 heating season (Kamery 2006). 

At one extreme, if the level of demand is high and no stockpiles exist, and if the plant is running at full capacity, then even minor stoppages will result in lost production. If the problems are major or prolonged ones, then delivery dates may not be met, with consequent penalties. If the market is a competitive one, future contracts may be lost to other producers. 

The New York Coffee, Sugar and Cocoa Exchange traded a futures contract on the United States consumer prices index (CPI) in the 1980s. 

The repo market in linkers coexists alongside an old-style stocklending system. Issues seldom stray far from general collateral rates. Index-linked gilts are not strippable, and there is no index-linked futures contract. There is a sterling inflation derivatives market, which... 

In certain circumstances a specific issue will go tight in the repo market, meaning that it is difficult to borrow the stock for delivery into short sales. This is typically reflected in the stock going special in the repo market. On rare occasions the stock may become undeliverable, leading to failed transactions and also failure to deliver into the equivalent gilt futures contract. When this happens the DMO may make the stock available for borrowing, out of official portfolios, or issue a small amount of the stock into the market. 

There are a range of users of gilt futures contracts. These include ... 

The popularity and liquidity of the gilt futures contract led to the listing of gilt options on LIFFE in March 1986. Average daily volume in this contract was more than 16,000 lots during 2002. The contract is an... 

During 2002 Bund GC traded in a range around 2-10 basis points below EURIBOR in the short dates, while on occasion trading in specials went down to 90 basis points below the GC rate. As in other markets, there are a number of reasons why government stocks become special in the German market however, the primary factor is the extent of its deliverability into the Bund futures contract. For illustration we show, in Exhibit 10.23, the spread below GC for repo in the DBR... 

The Bund future was launched on 29 September 1988. With the introduction of the German government bond futures contract LIFFE was now trading bond contracts in the US Treasury bond, the Japanese government bond, the Italian government bond and UK gilts. It was the first financial futures exchange to have achieved this position. The contract specifications on the UK and European bond futures offered at that time appear in Exhibit 16.1. 

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