Sunday, September 03, 2006

SFGate.com - "Trading on price of homes" (9-3-06)

"In May, the Chicago Mercantile Exchange started trading futures and options contracts on home-price indexes for 10 individual metro areas including San Francisco, plus an index representing all 10 cities."

"Futures and options are contracts that trade on exchanges and let investors bet on prices going up or down. They are known as derivatives because their price movements are derived from the price movements of an underlying security, asset or index."

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