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Futures on the FTSE/ASE Mid 40 index
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| | First Trading day: January 28, 2000 Trading hours: 11:00am to 17:00pm | |
Introduction
For futures on FTSE/ASE Mid 40 that are traded in Derivatives Market of the Athens Exchange S.A. the underlying asset is the mid cap index FTSE/ASE Mid 40. The index is a diversified and well-balanced basket of 40 medium capitalisation stocks of the ASE, from a large number of sectors. It tracks a popular segment of the stock market that has demonstrated high historic volatility levels. Its constituent stocks account for over 15% of ASE’s total capitalisation. The index was developed in 1999 by the partnership of ASE with FTSE International.
Brief description
A futures contract is an agreement between a buyer and a seller, whereby the latter will deliver and the former will accept the delivery of a certain quantity of the underlying asset at a prespecified future day and price. The futures contract on the index FTSE/ASE Mid 40 is cash settled in the sense that the difference between the traded price of the contract and the closing price of the index on the expiration day of the contract are settled between the counterparties in cash. As a matter of fact, as the price of the contract changes daily, it is cash settled on a daily basis, up until the expiration of the contract. The futures contract is traded in index points, while the monetary value of the contract is calculated by multiplying the futures price by the multiplier 5 EUR per point. For example, a contract trading at 1,150 points has value of 5.750 EUR. The futures price whilst not following precisely the index, is usually close to its value. As the stock prices change, the index value is adjusted every minute and its variations, influence by the futures price.
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