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n Investment Analysts Journal - Investment basics XXXIX. The relationship between futures and spot prices

Volume 1999, Issue 49
  • ISSN : 1029-3523
  • E-ISSN: 2077-0227
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Abstract

Extracted from text ... Number 49 - Part 6 JU de Villiers* Investment Basics XXXIX. The relationship between futures and spot prices* 1. Forward and spot prices In a perfect market, the forward price on a non-dividend paying security is determined by the cost of carry relationship. To own the security in the future, investors could either enter into a forward contract now to purchase the security at price F0, t in the future, or they could buy the security now at a price S0 and keep it till the future date. If they buy the security now they have to finance the purchase ..

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/content/invest/1999/49/EJC46708
1999-01-01
2017-10-19

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