If you live in certain cities, you can hedge against a change in the price of your home by purchasing a real estate futures contract on the Chicago Mercantile Exchange.

Question

Quizplus · Accepted Answer

Real estate futures contracts are traded on the Chicago Mercantile Exchange, allowing homeowners to hedge against a potential change in the value of their home. However, this option is only available in certain cities where there is enough demand for the contracts to be offered.

If You Live in Certain Cities, You Can Hedge Against