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To: shades who wrote (61561)4/4/2005 1:33:21 AM
From: Taikun  Respond to of 74559
 
shades,

Thanks.

So far the derivatives market has been largely supply driven. They get a market maker and register on the exchange. If it were demand driven, we'd have derivatives for things people really need:

1. call on college education 18 years out for each kid
2. call on long term care from age 65
3. put on your city home you want to downsize out of when you retire
4. call on the country home you want to move into
5. call on medical expenses for every year of your life
6. call on energy costs for your home

I see one of the housing derivatives actually needs a counterparty where you have to bet on a market going up and a market falling. If this were developed it would be a single market contract.

D