1. notes book2 P26, 倒数第二行,

it's possible, on any given day, for the trading volume on a contract to be higher than its open interest.

WHY?

2. notes book2 P37, 第三段倒数第4行，

assume that the prices in an industry frequently adjust for changes in input prices and exchange rates. if competitors do not hedge, then there is an incentive to keep the status quo. in this way, the company ensures that profitability will remain more stable than if it were to hedge frequent changes.

WHY?

3. notes book2 p38-- sources of basis risk/ 1.interruption in the convergence of the futures and spot prices/倒数第2行

an interruption in the convergence could result in payments from the seller to the buyer.

WHY?

Many thanks!

我手上是hard copy啊 你是说要一页页扫上来么 那要给我写时间·#￥%……—*

The opinion provided below is only from my view, maybe limited or wrong, welcome to correct them:

  1: The open interest usually update later than the market, and they do in past (the open interest infromation is one trading day older than the price information in the Past News paper Quotes, I don't kown exactly about this phenomenon is still exist now )

  2:We can clear this problem from two aspects,

First, we consider you do hedge and your competitors don't.If the hedge is benefit for you to down your costs in input prices and exchange prices than your competitors,there is no doult for you to do this weather your competitors is hedge or not;

Otherwise, There is no deny the activitis is actually due with the fluctuation in your input costs and exchange costs, however,let's consider no or almost enough your competitors ,who can mainly affect the market,are not hedge this risks but you,at this time, your additional costs in hedge risks will down your profits than your competitors, as a result, you are stand in relative disadvantageous place.

We limit some risks and generate a new risk.

Second, assume no hedge take by your company and your competitors(mainly enough so that can broadly affect the market), if the input prices and exchange prices fluctuate to much ,don't care so much cos every one in this area will pay for the bill,so that the prices of your products will increase or down with the fluctuation like your competitors.as a result, you can get a profit relatively stable.

So , before we hedge ,we are better realize the whole market we are consentrate in and our power in this market.

3:About this problem, I think you can get it.give a hint, the buyers also maybe make pay to the sellers.

My QQ:277786617