If at the expiration date, the deliverable Canada bond is selling for 101 but the Canada bond

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If at the expiration date, the deliverable Canada bond is selling for 101 but the Canada bond futures contract is selling for 102, what will happen to the futures price? Explain your answer.

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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Question Posted: Nov 09, 2018 12:12 PM

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If at the expiration date, the deliverable Canada bond is selling for 101 but the Canada bond

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The futures price must fall to 101 Otherwise arbitrageurs could bu...View the full answer

The Economics of Money Banking and Financial Markets

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