The spot-futures parity relationship states that the equilibrium futures price on an asset providing no service or

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The spot-futures parity relationship states that the equilibrium futures price on an asset providing no service or payments (such as dividends) is F0 = P0(1 + rf)

. If the futures price deviates from this value, then market participants can earn arbitrage profits. P-636

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Jul 31, 2024 05:01 AM

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The spot-futures parity relationship states that the equilibrium futures price on an asset providing no service or

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