continued

For the year ended December 31, 2019, the effect of derivative contracts on the Accounts’
Statements of operations was as follows (dollar amounts are in thousands):
Change in
unrealized
Realized appreciation
Derivative contracts Location gain (loss) (depreciation)
Stock Account
Equity contracts Purchased options $ 27,595 $ 2,674
Equity contracts Written options (13,928) (398)
Equity contracts Futures contracts 51,992 29,942
Foreign-exchange contracts Forward foreign
currency contracts (1,631) (1,542)
Global Equities Account
Equity contracts Purchased options (774) —
Equity contracts Written options 283 —
Equity contracts Futures contracts 24,749 10,804
Equity Index Account
Equity contracts Futures contracts 19,656 (2,155)
Bond Market Account
Foreign-exchange contracts Forward foreign
currency contracts 4,893 (1,602)
Credit contracts Swap contracts (1,145) (2,485)
Inflation-Linked Bond Account
Interest-rate contracts Futures contracts (815) 285
Social Choice Account
Foreign-exchange contracts Forward foreign
currency contracts 332 (122)

Options: Certain Accounts are subject to equity price risk in the normal course of
pursuing their investment objectives. Options can be settled either directly with the
counterparty (over the counter) or through a central clearinghouse (exchange traded).
To manage the risk, the Accounts may invest in both equity and index options. The
Accounts use options contracts for hedging and cash management purposes and to
seek to increase total return. Call and put equity options give the holder the right, in
return for a premium paid, to purchase or sell, respectively, a security at a specified
exercise price at any time during the period of the option. Index options are written or
purchased options in which the underlying investment is a specified index. The
exercise of an index option will not result in the physical delivery of the underlier, but
a cash transfer of the difference between the settlement price of the underlier and the
strike price of the option. Purchased options are included in the Summary portfolio of
investments, and written options are separately reflected as a liability in the
Statements of assets and liabilities. Premiums on unexercised, expired options are
recorded as realized gains or losses; premiums on exercised options are recorded as
an adjustment to the proceeds from the sale or cost of the purchase. The difference
between the premium and the amount received or paid in a closing transaction is also
treated as a realized gain or loss. Risks may arise upon entering into over the counter
College Retirement Equities Fund ■ 2019 Annual Report 107