Determining the relevant fair value(s) o
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Ira G. Kawaller
📂
Article
📅
1991
🏛
John Wiley and Sons
🌐
English
⚖ 538 KB
A termination of the futures' break-even price or fair value. Conceptually, being able to sell futures at prices above the break-even, or to buy futures at prices below the break-even, offers opportunity for incremental gain. This article points out an important, though widely unappreciated, caveat.