Explain how arbitrage causes the futures and spot prices to converge.

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Financial System Of The Economy Principles Of Money And Banking

ISBN: 9780765622464

5th Edition

Authors: Maureen Burton,Bruce Brown

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Question Posted: Nov 28, 2023 11:59 PM

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Explain how arbitrage causes the futures and spot prices to converge.

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Arbitrage is the practice of taking advantage of price discrepancies between different markets to make riskfree profits In the context of futures and ...View the full answer

Financial System Of The Economy Principles Of Money And Banking

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