Indeterminacy of price and quantity in futures markets
โ Scribed by Margaret A. Monroe
- Publisher
- John Wiley and Sons
- Year
- 1988
- Tongue
- English
- Weight
- 879 KB
- Volume
- 8
- Category
- Article
- ISSN
- 0270-7314
No coin nor oath required. For personal study only.
๐ SIMILAR VOLUMES
Another major economic function of the futures market is a price discovery role. Futures price for a commodity represents all the information about the future cash price. So, economic agents make plans and decisions by looking at the futures price. Jisoo Yo0 is an Assistant professor o f Economics
Nikolaos T. Milonas\* he hypothesis that price variability increases as time to maturity nears-the T so-called "maturity effect"-has important implications on the behavior of futures prices. This article derives the theoretical basis for this effect in line with Samuelson's (1965) arguments, develop
Since definition 1) is the least stringent and provides the most degrees of freedom, it is not surprising that our results show fewer significant correlations for definitions 2) and 3).