Could someone please post details on the CME contracts? Some specific questions:
(1) URL to track dates and prices?
(2) If I expect prices to go down more than 16.5%, should I buy or sell the contract, i.e. which way round does it work?
(3) What are commissions and other expenses (market impact) to make a trade? What are margin requirements?
(4) Supposing I own a house outright now worth $1M (i.e. with no mortgage). Does the current 16.5% expectation mean I could sell my house, buy/sell some contracts, collect $165,000, rent for four years, and then receive enough money to be able to buy back an equivalent house at whatever its price is in 2011?
If the above scenario is based on a misunderstanding, which part is impossible?
(5) If the scenario is possible, what would the transaction and carrying costs be? I understand abour RE commissions on the sale and purchase. What would be the borrowing costs be to hold on to the CME contract for four years?
