CBOT To Launch Options On 30 Day Federal Fund Futures

On Friday March 14, 2003, the CBOT® is scheduled to begin trading options on 30-Day Federal Fund futures. The spectacular growth of the Fed Funds future has prompted the exchange to include options on the popular contract. Options on the Fed Fund future will add another arrow in the CBOT's quiver of exchange traded products. The uses for options on Fed Fund futures include but are not limited to: yield enhancement strategies, synthetic cap and floor creation, alternative stub hedging, as well as simple exposure to short term interest rates. End users are expected to be proprietary, matched book, funding, forex, equity index, and arbitrage traders.