Professor Ali Gamal Abdelgawad: The COMMERZBANK AG Put CAC FUT 05/17 31Dec99

• بواسطة دكتور علي جمال عبد الجواد
• 2025 Nov 28
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Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Investment and Finance.

Recent Analysis of the COMMERZBANK AG Put CAC FUT 05/17 31Dec99

An analytical article on performance, risks, and opportunities in light of current market data

The COMMERZBANK AG Put CAC FUT 05/17 31Dec99 is a derivative instrument that allows investors to speculate on the decline of the French CAC 40 index through a "Put Certificate" structure issued by Commerzbank AG. While such instruments offer opportunities for speculators anticipating a downward trend in the European market, recent data reveals a completely different picture regarding the instrument's liquidity and actual market movement.

What is the instrument and how does it work?

The certificate is based on the performance of a futures contract on the CAC 40 index and operates according to the mechanism of a downward-sloping derivative contract; the lower the index falls, the greater the potential for a return.

The recorded maturity date of “December 31, 2099” is a common technical/nominal date for long-term derivative certificates, often indicating that the instrument is tradable without a near-term expiry horizon.

Recent Certificate Data

According to the latest available data:

Current Price: 0.0102

Trading Volume: Zero

Daily Trading Range: 0.0102 – 0.0300

Bid/Ask: Not available or suspended

Annual Change: Almost zero

The lack of trading volume and the fixed price range clearly indicate that the certificate is virtually frozen in the market, experiencing minimal activity. This makes its evaluation from an investment or speculative perspective extremely sensitive.

Current Risk Assessment

1. Near-Zero Liquidity

Low liquidity is one of the most serious aspects of this type of certificate. The absence of buyers and sellers means that an investor may enter a trade and be unable to exit in time, or may not receive any actual execution of their orders.

2. Potential for Loss of Value

Put instruments rely on a decline in the underlying index. With the European CAC 40 index relatively stable, the likelihood of the certificate benefiting is extremely low, keeping the price close to its "natural bottom."

3. Lack of Liquidity

Even if the index moves in the right direction, the lack of liquidity may prevent investors from capitalizing on this movement, making the instrument unsuitable except for high-risk speculators.

4. Unsuitability for Long-Term Investment

Derivative certificates like these are not considered investment instruments, but rather short-term speculative tools that depend on precise market timing.

Are There Any Opportunities Despite All This?

Theoretically, yes—if the CAC 40 index experiences a sharp and sudden decline, the certificate's value could rise significantly.

However, in practice, the low trading volume makes this opportunity difficult to realize, as executing sell orders in a timely manner may be impossible.

Summary

The COMMERZBANK AG Put CAC FUT 05/17 31Dec99 certificate appears unattractive to the market at present due to:

Lack of liquidity

Extremely low price

Stagnation in buying and selling activity

The risk of being unable to exit

Investing in this certificate is more akin to gambling than investing or even professional speculation. It is only suitable for those who plan to put down a very small amount that they can fully absorb in case of loss and are willing to wait without any guarantees.

• الوسوم
• Professor
• Ali
• Gamal
• Abdelgawad:
• The
• COMMERZBANK
• AG
• Put
• CAC
• FUT
• 05/17
• 31Dec99
• Professor Ali Gamal Abdelgawad: The COMMERZBANK AG Put CAC FUT 05/17 31Dec99