Theoretical futures price

Theoretical futures price
Also called the fair price, the equilibrium futures price. ...

Theoretical futures price
The equilibrium futures price. Also called the fair price.

Also called the theoretical futures price, which equals the spot price continuously compounded at the cost of carry rate for some time interval.

Index arbitrage An investment trading strategy that exploits divergences between actual and theoretical futures prices.

An investment/trading strategy that exploits divergences between actual and theoretical futures prices.

Futures contracts: the theoretical futures price obtained by continuously compounding the Spot Price at the Cost of Carry rate for some time interval. It is an equilibrium price and any discrepancy would be closed by arbitrage.

The equilibrium price for futures contracts. Also called the theoretical futures price, which equals
the spot price continuously compounded at the cost of carry rate for some time interval.
Fair price provision
See:appraisal rights.

An investment strategy that attempts to profit from the differences between actual and theoretical futures prices of the same stock index.

See also: Futures price, Exercise price, Equilibrium, Settlement Date, Values