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The relationship between Asian equity and commodity futures markets

✍ Scribed by Thuraisamy, Kannan S.; Sharma, Susan Sunila; Ali Ahmed, Huson Joher


Book ID
121766760
Publisher
Elsevier Science
Year
2013
Tongue
English
Weight
349 KB
Volume
28
Category
Article
ISSN
1049-0078

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The ability of futures markets to predict subsequent spot prices has been a controversial topic for a number of years. Empirical evidence to date is mixed; for any given market, some studies find evidence of efficiency, others of inefficiency. In part, these apparently conflicting findings reflect d

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hen the future prices of commodities are known with certainty there is no reason to establish a futures market. Agents can construct a futures position in any commodity by borrowing or lending, since the future value of both the loan and the commodity are known. Uncertainty introduces two motives f