The Indian Liquor Industry Prohibition Story

EXHIBIT I
DIFFERENCE BETWEEN FUTURES AND FORWARDS CONTRACTS Contd..

The number in the open column shows the opening price of the contract for that day's trading, followed by the highest price in the second column achieved during the day, and the lowest price achieved during the day of trading for a particular contract in the third column, say April 03, May 03. The fourth number in the row is the settlement price. This is the average of the prices at which the contract traded immediately before the bell, signaling the end of the trading for the day. The fifth number in the row is the change in the settlement price in comparison to the settlement price the preceding day. The three columns under the prior day heading, show the settlement price the preceding day, the volume of trading a day prior and the open interest for each contract. Open interest is the total number of the contracts outstanding. It is the sum of all the long positions, or equivalently, it is the sum of all the short positions.

ADDITIONAL READINGS & REFERENCES:

1.John C. Hull., Options, Futures and Other Derivatives.
2.Robert A. Strong, Derivatives An Introduction
3.Financial Risk Management, IUP.
4.www.cme.com
5.www.wehner.tamu.edu
6.www.cba.uiuc.edu

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