The effect of futures trading on price variability in the market for onions
โ Scribed by Richard S. Higgins; Randall G. Holcombe
- Book ID
- 112728013
- Publisher
- Springer US
- Year
- 1980
- Tongue
- English
- Weight
- 845 KB
- Volume
- 8
- Category
- Article
- ISSN
- 0197-4254
No coin nor oath required. For personal study only.
๐ SIMILAR VOLUMES
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
ne of the timeless concerns associated with futures trading is the possibility 0 that destabilizing speculation in futures markets will be transmitted to the cash markets causing distortions in the prices of the underlying commodities. With the tremendous growth of the market for futures contracts o
ndividuals trading in futures markets are required to post security deposits, I called margins, to insure that brokers and exchanges are potected from nonperformance due to unfavorable price movements. Specified in dollar amounts per contract, margins may be posted in either cash or interest-bearing