An analysis of single-stock futures trading in the U.S.

Authors

  • Travis Jones Department of Accounting and Finance, College of Business, Florida Gulf Coast University
  • Robert Brooks Department of Finance, University of Alabama

DOI:

https://doi.org/10.61190/fsr.v14i2.4818

Keywords:

Security futures, Single-stock futures

Abstract

This paper presents an overview of how single stock futures (SSF) have developed since their introduction in the United States. We present a number of reasons why individual investor interest in SSF may not have reached its potential. Individual investors should note SSF volumes are very low and implied interest rates indicate that SSF settlement prices often have little relation to their respective underlying stock's closing prices. We present evidence of a number of non-dividend paying companies with underlying stock prices that closed above the settlement prices of their respective SSF, contradicting the carry arbitrage model.

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Published

2005-06-30

Issue

Vol. 14 No. 2 (2005): FSR Summer 2005

Section

New Original Submission

License

Copyright (c) 2005 Academy of Financial Services

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How to Cite

An analysis of single-stock futures trading in the U.S. (2005). Financial Services Review, 14(2), 85-95. https://doi.org/10.61190/fsr.v14i2.4818