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To: elmatador who wrote (53832)9/29/2004 9:52:57 PM
From: Taikun  Respond to of 74559
 
If only the derivative people really wanted were available.

You can get a fixed rate mortgage on a home for 30 yrs-now that is a popular derivative.

You can put a deposit on a purchase.

But you can't buy a call option on healthcare premiums or energy 30 years from now. If these kinds of derivatives were available it would solve the problems of underfunding Social Security (assuming the counterparties managed the risk well-which is a big IF looking at Fannie Mae)

I'm surprised the market doesn't have these options-what a great way to repackage and sell risk on increases in prices of energy and healthcare or food.