... 1 Chapter 13 Financial Futures Markets Financial Markets and Institutions, 7e, Jeff Madura Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved. 2 Chapter ... futures contracts Speculating with interest rate futures Closing out the futures position 3 Chapter Outline (cont’d) Hedging with interest rate futures Bond index futures Stock index ... settlement price Settlement months March, June, September, December March, June, September, December 13 Valuation of Financial Futures The price of a financial futures contract generally reflects...