The Killer App for Single-Stock Futures

Let's construct our own little SAT test:

Outright directional trade is to swap as:
a. Tip is to iceberg
b. Tail is to dog
c. Horn is to rhinoceros
d. All of the above

The answer is "d," all of the above. The fixed income, currency and physical commodity markets are dominated not by the outright buying and selling of goods, which both ties up and risks a lot of capital, but by swap transactions. ...