Pricing The European Option on the Futures of Stock Indices to Hedge the Risks of Price Volatilities : Analytical Study on the Dubai Stock Exchange

This study aimed to shed light on a statement of the hedging strategy with options for futures in the European way and using the (Black Scholes) model of Volatilities in stock prices and their indicators affected as a result, and the role this hedging plays in achieving returns and avoiding loss compared to present sale and purchase. Therefore, the study focused on a number of questions about the problem, for which a number of hypotheses were formulated, the most prominent of which is: (The Black Scholes model is accurate in pricing European options on the futures of stock indices).The study sample consisted of five futures contracts for a number of companies listed on the Dubai Stock Exchange for the period from (2/21/2018 to 3/16/2020). It is worth noting that choosing the Dubai Stock Exchange came as a means and not an end, as the main purpose is to study the Iraqi Stock Exchange and how to develop it using these tools, but for technical reasons related to the absence of scientific awareness required for future options programs on the part of companies on the one hand and by dealers in the market from On the other hand, this creative