2009•Journal of Hebei University of Science and Technology(Social Sciences)Requires access
Analysis of Function of Price Discovery for the Futures Markets
Jidong Li
Open publisher page 1 citations
Abstract
The function of price discovery for the futures markets refers to the guiding role of futures prices in the spot price.For the futures of capital assets,equilibrium of futures and current spot prices,current spot and expected spot prices,futures and expected spot prices can be established.There are the same systematic risks and risk premiums between futures and current spot price.For the futures of consumption assets,equilibrium of futures and current spot prices,current spot and expected spot prices can not be established for the unfeasible short sell.Only the equilibrium of current spot and expected spot prices can exist.The rate of return on futures prices can't decide the expected rate of return on the cash market.