Trade, and the Chicago Mercantile Exchange (CME) started trading futures on the S&P 500 index. ese
index futures were used by equity portfolio managers to hedge the uncertainty in the portfolio value.
However, these index futures were not helpful in hedging the value of individual stocks held by investors.
Although single stock options were available, hedgers who wanted to hedge without paying for it were
not able to do so. Similarly, those who wanted to speculate on the price movement of individual stocks
also had no vehicle through which they could do so. is is why single stock futures ...
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