Question
a) How do the spot and futures prices of oil differ? In particular, how does the futures basis behave over the life of the futures
a) How do the spot and futures prices of oil differ? In particular, how does the futures basis behave over the life of the futures contract?
b) What implications does this have for the price of oil futures options?
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
