WebCab Options and Futures Demo v2.5 (J2SE Edition)

## Package webcab.lib.finance.futures

Pricing and Hedging of Futures and Forward contracts on stocks, bonds, commodities and indexes.

See:
Description

Class Summary
DailyReporting: Within this class we consider methods related to the daily reporting and management of a futures trading account.
Forwards: Within this class we consider the evaluation of forward contracts and the cash flow implications.
FuturesEvaluation: Within this class we consider evaluation of futures contracts on stocks, bonds and indexes.
FuturesHedging: Within this class we consider the use of futures contracts for the hedging of risks within stock, commodity, bond and currency markets.
FuturesOnCommodities: Within this class we consider the evaluation of futures contracts on commodities of both investment and consumption type.
Interest: Within this class we consider methods for the evaluation of interest bearing investments.

Exception Summary
DailyReportingDemoException: This exception is thrown by the demo version of the DailyReporting class after the number of maximum method calls has been reached.
ForwardsDemoException: This exception is thrown by the demo version of the Forwards class after the number of maximum method calls has been reached.
FuturesEvaluationDemoException: This exception is thrown by the demo version of the FuturesEvaluation class after the number of maximum method calls has been reached.
FuturesHedgingDemoException: This exception is thrown by the demo version of the FuturesHedging class after the number of maximum method calls has been reached.
FuturesOnCommoditiesDemoException: This exception is thrown by the demo version of the FuturesOnCommodities class after the number of maximum method calls has been reached.
InterestDemoException: This exception is thrown by the demo version of the Interest class after the number of maximum method calls has been reached.

## Package webcab.lib.finance.futures Description

Pricing and Hedging of Futures and Forward contracts on stocks, bonds, commodities and indexes.

### Details of the Functionality Offered

The Futures module implements the following methods and procedures:

- Pricing on investment and consumption assets - Pricing of futures contracts on stocks, bonds, indexes, currencies and commodities:

- Futures on stocks, bonds, indexes - evaluation for assets with or without income, effective gearing.
- Futures on commodities - cost of carry, utility yield.

- Hedging - Portfolio hedging using index futures, optimal hedge ratio.

- Portfolio Hedging - delta hedge a portfolio using the beta coefficient.
- Optimal Hedge Ratio - the optimal ratio of the size of the position taken in futures contracts and the size of the exposure.

- Future Account management - margin, daily P&L,total equity, excess margin.
- Interest calculations - return, compound interest, compounding periods conversion.

### Classes contained with the Future module

- FuturesEvaluation - Evaluation of Futures contracts of stock, bonds and indexes.
- FuturesHedging - Use of futures contracts for the hedging of risks within stock, commodity, bond and currency markets.
- FuturesOnCommodities - Evaluation of futures contracts on commodities of both investment and consumption type.
- Forwards - Evaluation of forward contracts and the cash flow implications.
- Interest - Evaluation of interest bearing investments.
- DailyReporting - Related to the daily reporting and management of a futures trading account.

WebCab Options and Futures Demo v2.5 (J2SE Edition)