When commodities are not stored for investment purposes, the equilibrium futures price can be derived from general
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When commodities are not stored for investment purposes, the equilibrium futures price can be derived from general risk–return principles. In this case, F0 = E(PT)
(
1 + r _____f 1 + k
)
T This futures price is fully consistent with spot-futures parity for stored assets. P-63
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Related Book For 
ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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