The value of each contract is $250 times the CSI index of each city. For example, if the index value in Los Angeles is reported as 270 points, the contract value is $67,500, and the minimum volatility range of the contract is 0.20 index points, which is equivalent to $50. The CSI index futures contract is only traded on the global electronic trading system platform of the Chicago Mercantile Exchange, and the trading time is from Monday to Wednesday, from 5 pm to 2 pm the next day. The compound weighted ratio of cities in the CSI index futures contract is as follows: Boston accounts for 7.4%; Chicago accounts for 8.9%; Denver accounts for 3.6%; Las Vegas accounts for1.5%; Los Angeles accounts for 21.2%; Miami accounts for 5%; New york accounts for 27.2%; Santiago accounts for 5.5%; San Francisco accounts for11.8%; Washington accounts for 7.9%.
Options are traded by the Standard & Poor's Goldman Sachs Commodity Index (GSCI) through open outcry from 8 am to 2 pm every Monday to Friday. This option is a European option, which is exercised by the CSI index futures contract. The strike price of this option is five index points higher or lower than that of the futures contract. The largest trading position of futures and options contracts is to trade 5000 contracts at a time on the exchange. Because futures contracts and options contracts are negatively related to stocks and bonds, futures options trading has become an optional investment method worthy of attention.
Seven major investment banks, including Credit Suisse, Goldman Sachs and Merrill Lynch, have obtained permission from the National Real Estate Investment Trust Committee to provide indexes for over-the-counter transactions. Many people think that this special liquid property derivative will help to smooth out the housing price bubble. A healthy derivatives market enables investors to reduce transaction costs instead of speculating. In fact, the transaction of real estate options first started in London, several years before CME.