hedging: BUY OR SELL FUTURES TO HEDGE ON YOUR RESIDENTAIL REAL ESTATE - 12/10/07 12:53 PM
It's been 18 months now that you can, through the Chicago Mercantile Exchange, trade futures based on house price indexes for each of the top ten largest US cities.  You can sell futures, buy puts or sell calls all designed to hedge losses that might be occurring on the value of your home. 
 Each of these futures contracts are trading on an ongoing basis-- for example, the house price index in Los Angeles is trading with the underlying assumption of an 11.5% drop over the next two years.  With that index trading at $57,000, one could hedge the price drop of … (1 comments)

 

douglas moore

Walnut Creek, CA

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Alain Pinel Realtors

Address: 1646 n california blvd , Suite 101, Walnut Creek, CA, 94596

Office: 925(934) 111-1222

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