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Author Question: The dollar value of one NY Snowfall Index futures contract is the product of the CME snowfall index ... (Read 207 times)

lak

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on: Apr 25, 2021
The dollar value of one NY Snowfall Index futures contract is the product of the CME snowfall index (for New York) and the futures contract multiple of $200.

The New York CME snowfall index is measured monthly and is equal to ten times the cumulative snowfall for the calendar month. If twenty feet of snow fall in March, then the CME NY snowfall index is 200 = (10 * 20) and the contract value is 200 * $200 = $40,000. The contract is cash settled, so at the settlement date, cash is exchanged between losing and winning counterparties to settle the contract.

You are planning a ski trip to Mount Killington (north of New York in southern New Hampshire). You are worried that there may be no snow. To hedge the risk of a bad ski trip, what position should you take in the NY Snowfall Index futures contract?
◦ Short
◦ Long
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Marked as best answer by lak on Apr 25, 2021

jaygar71

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lak

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

Laurenleakan

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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