FINANCIAL FUTURES AND OPTIONS
Justina Bikorimana
Dakota State University
14/04/2017
Report
This is the raw data with the moving averages. This Data helps to know the settlement prices including the 3-day moving averages, 6-day moving averages, 8-day moving averages and 10-day moving averages. The data ranges from 1stFeb 2017 to 25th march 2017.
Findings
The findings from the data shows there is an opening and closing prices for the product. The moving averages (MA) depends on the settlement prices. Settlement prices are the agreeable prices for the product at a market price. The moving averages misses some settlement prices. For example in the column of 3-day MA, it misses two previous prices while 6-day MA misses 5 previous prices.
The line chart below shows the trend of raw data and the period on how the moving averages moves. It consists of date, and the moving averages from day 3, 6, 8, and 10. 3-day MA shows how high is the price for the product up to 10-day MA which is a bit lower than the rest. This means that there is a decline of prices when calculation is being done from the settlement prices (opening and closing prices of the product)
This is the data for Dow Jones Industrial (DJI):
Date Open Close Settlement prices 3-DAY MA 6-DAY MA 8-DAY MA 10-DAY MA
24-03-2017 20674.45 20596.72 30972.81 10324.27 5162.1349 3871.6012 3097.281
23-03-2017 20645.07 20656.58 30973.36 10324.453 5162.2267 3871.67 3097.336
22-03-2017 20640.42 20661.3 30971.07 10323.69 5161.8451 3871.3838 3097.107
21-03-2017 20956.33 20668.01 31290.33 10430.112 5215.0558 3911.2919 3129.033
20-03-2017 20916.27 20905.86 31369.2 10456.4 5228.1999 3921.1499 3136.92
17-03-2017 20965.37 20914.62 31422.68 10474.226 5237.1131 3927.8348 3142.268
16-03-2017 20969.27 20934.55 31436.54 10478.848 5239.4242 3929.5681 3143.654
15-03-2017 20874.78 20950.1 31349.83 10449.943 5224.9715 3918.7286 3134.983
14-03-2017 20848.6 20837.37 31267.28 10422.428 5211.214 3908.4105 3126.728
13-03-2017 20899.28 20881.48 31340.02 10446.673 5223.3366 3917.5024 3134.002
10-03-2017 20919.01 20902.98 31370.5 10456.833 5228.4167 3921.3125 3137.05
09-03-2017 20864.32 20858.19 31293.42 10431.138 5215.5692 3911.6769 3129.342
08-03-2017 20940.44 20855.73 31368.3 10456.102 5228.0508 3921.0381 3136.83
07-03-2017 20934.89 20924.76 31397.27 10465.757 5232.8784 3924.6588 3139.727
06-03-2017 20955.71 20954.34 31432.88 10477.627 5238.8135 3929.1101 3143.288
03-03-2017 21008.75 21005.71 31511.61 10503.868 5251.9342 3938.9507 3151.161
02-03-2017 21128.91 21002.97 31630.4 10543.465 5271.7326 3953.7994 3163.04
01-03-2017 20957.29 21115.55 31515.06 10505.021 5252.5107 3939.3831 3151.506
28-02-2017 20833.88 20812.24 31240 10413.334 5206.6668 3905.0001 3124
27-02-2017 20808.71 20837.44 31227.43 10409.144 5204.5718 3903.4288 3122.743
24-02-2017 20751.91 20821.76 31162.79 10387.597 5193.7983 3895.3488 3116.279
23-02-2017 20817.21 20810.32 31222.37 10407.457 5203.7285 3902.7964 3122.237
22-02-2017 20715.41 20775.6 31103.21 10367.737 5183.8683 3887.9012 3110.321
21-02-2017 20663.43 20743 31034.93 10344.977 5172.4883 3879.3662 3103.493
17-02-2017 20564.13 20624.05 30876.16 10292.052 5146.026 3859.5195 3087.616
16-02-2017 20627.31 20619.77 30937.2 10312.398 5156.1992 3867.1494 3093.72
15-02-2017 20504.27 20611.86 30810.2 10270.066 5135.0332 3851.2749 3081.02
14-02-2017 20374.22 20504.41 30626.43 10208.809 5104.4043 3828.3032 3062.643
13-02-2017 20338.54 20412.16 30544.62 10181.54 5090.7699 3818.0774 3054.462
10-02-2017 20211.23 20269.37 30345.92 10115.305 5057.6525 3793.2394 3034.592
09-02-2017 20061.73 20172.4 30147.93 10049.31 5024.6551 3768.4913 3014.793
08-02-2017 20049.29 20054.34 30076.46 10025.486 5012.7432 3759.5574 3007.646
07-02-2017 20107.62 20090.29 30152.76 10050.921 5025.4606 3769.0955 3015.276
06-02-2017 20025.61 20052.42 30051.82 10017.273 5008.6366 3756.4774 3005.182
03-02-2017 19964.21 20071.46 29999.94 9999.9805 4999.9902 3749.9927 2999.994
02-02-2017 19858.34 19884.91 29800.79 9933.5983 4966.7992 3725.0994 2980.079
01-02-2017 19923.81 19890.94 29869.28 9956.4268 4978.2134 3733.66 2986.928
Conclusion
In conclusion, the futures contract is nice idea of investment. It gives the traders and other investors an opportunity to agree, buy and sell freely their product without any kind of tariffs. The data from the product really show that the product is really perceived by the investors. If we look at the moving averages of the future contract, it gives hope to the investors especially those who have a 3-day moving averages.
References:
Barchart. (2017). J6M17 | Futures Price Quote for Japanese Yen. Retrieved from barchart.com/futures/quotes/J6M17
DJI. (2017, April 12). ^DJI Historical Prices | Dow Jones Industrial Average Stock - Yahoo Finance. Retrieved from finance.yahoo.com/quote/%5EDJI/history?p=%5EDJI