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Title: Option trading and oil futures markets

Abstract

This book describes mechanics of options trading, particularly their use to complement trading in oil futures and forward markets to increase agents' flexibility in hedging against price risks. The main determinants of option premiums and a number of option pricing models are discussed as are the Black and Scholes Model, issues of options and oil-indexed bonds: The Philbro Proposal, NYMEX Crude Oil Option Contract and Standard Oil Issue.

Authors:
;
Publication Date:
OSTI Identifier:
5364462
Alternate Identifier(s):
OSTI ID: 5364462
Resource Type:
Book
Country of Publication:
United States
Language:
English
Subject:
02 PETROLEUM; PETROLEUM; MARKET; CONTRACTS; FORECASTING; PRICES; TRADE; ENERGY SOURCES; FOSSIL FUELS; FUELS 020700* -- Petroleum-- Economics, Industrial, & Business Aspects

Citation Formats

Chassard, C., and Halliwell, M.. Option trading and oil futures markets. United States: N. p., 1986. Web.
Chassard, C., & Halliwell, M.. Option trading and oil futures markets. United States.
Chassard, C., and Halliwell, M.. Wed . "Option trading and oil futures markets". United States. doi:.
@article{osti_5364462,
title = {Option trading and oil futures markets},
author = {Chassard, C. and Halliwell, M.},
abstractNote = {This book describes mechanics of options trading, particularly their use to complement trading in oil futures and forward markets to increase agents' flexibility in hedging against price risks. The main determinants of option premiums and a number of option pricing models are discussed as are the Black and Scholes Model, issues of options and oil-indexed bonds: The Philbro Proposal, NYMEX Crude Oil Option Contract and Standard Oil Issue.},
doi = {},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Wed Jan 01 00:00:00 EST 1986},
month = {Wed Jan 01 00:00:00 EST 1986}
}

Book:
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  • The recent changes in the structure of the oil trade and the world political situation have made oil prices extremely volatile. This book tries to explain the consequent complexities of the oil futures market, covering dealing, clearing, financial guarantees, delivery procedures and contact specification. It also discusses the effects of the market on the oil industry, consumers, developing countries and governments.
  • This book on oil futures trading takes a look at a market and its various hedging strategies. Growing interest in trading of commodity futures has spread to petroleum, including crude oil, and key refined products such as gasoline and heating oil. This book describes how the international petroleum trade is structured, examines the working of oil futures markets in the United States and the United Kingdom, and assesses the possible courses of further developments.
  • The book is divided into four parts: I. Commodity Futures Markets; II. International Petroleum; Traders and Markets; III. Oil Futures Markets; IV. International Issues; with 16 chapters and 10 appendices covering prices and specimen futures contracts. It is an introduction to the ways of the world petroleum industry and the ins and outs of the commodities trading systems. It is designed to introduce the theory and practice of oil future to a wide audience. The chapters are detailed descriptions of the institutions, the processes and the consequences of futures trading with historical descriptions of the emergence of the activity andmore » the strategy behind it. There are chapters on multinational oil firms and on the formation of OPEC, and a chapter on why are there Futures Markets. In addition, there are chapters on each of the principal exchanges, government stockpiling and the international energy agency.« less
  • Although the use of new trade instruments began in the early 1980s and almost all market participants are still learning, petroleum traders of developing countries have lagged behind those in the developed countries. The lag has resulted in the inability of these countries to procure their petroleum requirements at the lowest possible cost. Development of modern trading skills, like that of any other know-how, requires an action plan to build the needed institutions and train the concerned staff. Before preparing an action plan, however, the staff, planners, and policymakers involved in petroleum supply need to acquire a fundamental understanding ofmore » the workings and the issues involved in the new era of petroleum trading. The report is intended to provide such an understanding. It provides a detailed description of petroleum spot markets, futures and options trading and their interlinkages with contract sales.« less
  • This text gives a broad background in both theory and practice of energy futures trading. It details successful contract requirements. It analyzes fundamental and technical pricing and using both to manage risk and achieve trading objectives. Hedging strategy, financial aspects of trading, accounting procedures, internal control systems and tax implications are all expertly covered. The book concludes with the potential impact of futures trading on the structure of world markets. Contents: Energy futures: an overview; Exchanges and their contracts; Fundamental analysis and the theory of hedging; The principles of technical analysis; Putting it all together; Integrated trading strategies; Energy futures;more » Financing and exposure management in the oil industry; Accounting principles, taxation, and internal control; The potential impacts of trading in oil futures on the world oil market; Appendix; Glossary; Index.« less