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Re: CBOT To Launch Futures Contract Based on Dow Jones U.S. Real Estate Index
This is a very interesting product as it matures, I'm sure it'll be a major vehicle with good volume. It's the only industry where risk exposure is still high.
Now, one question. Once this product is full swing, then they will add options on these products. After that, volatility will increase. Now, the big question is will the real real estate market will become just as volatile to reflect the futures products? I think ever since futures and options were introduced for indices and single stocks, I think they've gotten more volatile. Agree or disagree?
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