Domestic Box Office Receipt (DBOR) Futures Contracts
Contents
Exploring the Rise and Fall of Domestic Box Office Receipt (DBOR) Futures Contracts
Unravel the concept of Domestic Box Office Receipt (DBOR) futures contracts, a derivative product linked to the anticipated box office revenues of upcoming movie releases. Delve into their brief existence, the controversies surrounding them, and their ultimate ban in the United States.
Understanding DBOR Futures Contracts: A Brief Overview
Discover the nature of DBOR futures contracts and how they functioned as financial instruments tied to the projected box office earnings of newly released films. Explore the intended purposes of these contracts and the rationale behind their creation.
The Mechanics of DBOR Futures Contracts
Delve into the workings of DBOR futures contracts, including their cash-settled nature and the criteria used to determine their settlement amounts. Learn how speculators and movie studios could utilize these contracts to manage risk and potentially profit from movie releases.
The Rise and Fall of DBOR Futures Contracts
Explore the trajectory of DBOR futures contracts from their initial approval to their subsequent ban following the enactment of the Dodd-Frank Act. Understand the reasons behind their prohibition, including concerns about insider trading and manipulation within the movie industry.