Once upon a time, in a  Jungle village, a man appeared and announced to the

villagers that he would buy all the monkeys they could catch for $10 each.

The villagers, knowing that there were many monkeys around, went into the

bush and started catching them. The man bought thousands at $10 and, as

supply started to dwindle, the villagers began to lose interest as catching the

few left, took greater effort.


He then announced that he would now pay $20 for a monkey.

This renewed the interest of the villagers and again, they started catching

monkeys. Soon the supply diminished even further and people once again felt

the effort in catching the monkeys was worth more than the price and started

going back to their farms.  The offer was then increased to $25 each, and

eventually the supply of monkeys became so small that it was nearly impossible

to even find a monkey, let alone catch it!

The man now announced that he would pay $50 for a monkey!  However, since

he had to go to the city on some business, he would leave it to his assistant to

buy the monkeys on his behalf.

In the absence of his boss, the assistant told the villagers. "Look at all these

monkeys in that big cage that the boss had collected.  Tell you what, I will sell

them to you for $35 a monkey and when the boss returns you can sell them back

to him for $50!

No   tebequip  i think Bob is trying to tell us we are the monkeys being bought and sold and now no matter what, weather we are bought or sold we are in the cage and our owners are gone. I hate being a monkey. Well at least i like my cage or should i say home.

Or maybe bob is saying that because our industry has so many pumps trying to get so little work everyone is cutting prices and fighting over the work, kind of like our industry has been bought and sold and is now in a cage.

Heck I dont know, I hate it when Bob speaks metaphorically I never really know what he is talking about. I always have to call him and say WHAT? and he always laughs at me and then explains it.

I dont know, i kind of feel like one of those monkeys.

Tom if you feel like one of those villagers and i feel like one of those monkeys I wonder which one Bob is.

Bob is the wise old man from the next village who told his people beware of something that sounds too good to be true.

Your right that is who Bob is.

Bob is old wise un-caught monkey watching from tall jungle tree. Or... U.S. monkey salesman still waiting for monkey shipment LOL!

WHEN DERIVATIVES ARE OUTLAWED, ONLY OUTLAWS WILL HAVE DERIVATIVES

Economic Derivative

A relatively new form of derivative contract (the first ones were traded in 2002) that is based on the future value of some national economic indicator, such as non-farm payrolls, the purchasing manager's index, retail sales levels and the gross domestic product. Most of these economic derivatives are in the form of binary or "digital" options, whereby the only payout options are full payout (in the money) or nothing at all (out of the money). Other types of contracts currently traded include capped vanilla options and forwards. Economic derivatives have become attractive for their ability to mitigate some of the market and basis risks found in standard investment vehicles. For example, a binary option trading on the GDP would pay its face value if, when the official GDP release is made (the exercise date), the GDP value falls within a specific range (strike range). If the GDP figure is outside of this range, the option expires worthless. By looking at the implied probabilities of different outcomes, economists and investors can compare economic derivatives to Wall Street estimates and look for discrepancies between the two estimations. As might be expected, the market-driven process seen in derivatives pricing has shown itself to be the more consistently accurate predictor of future indicator release values.