futures-price
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P1.T3.22.19 Value of a forward contract
Learning objectives: Distinguish between the forward price and the value of a forward contract. Calculate the value of a forward contract on a financial asset that does or does not provide income or yield. Explain the relationship between forward and futures prices. Calculate the value of a...- Nicole Seaman
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- forward-contracts forward-price futures-price index-arbitrage stock-index-futures
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- Forum: FRM® Practice Questions
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P1.T3.717. Foreign exchange (FX) forwards and more cost of carry theory (Hull Chapter 5)
Learning objectives: Calculate a forward foreign exchange rate using the interest rate parity relationship. Define income, storage costs, and convenience yield. Calculate the futures price on commodities incorporating income/storage costs and/or convenience yields. Questions: 717.1. Near the...- Nicole Seaman
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- convenience-yield cost-of-carry foreign-exchange-forwards futures-price income interest-rate-parity storage-costs
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- Forum: FRM® Practice Questions
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Forward and Futures Market (lease rate)
Hi David, With regard to gold futures, why do they have an increasing futures curve (contango)? When we have a positive lease rate, because would the +delta not decrease the forward price... So*exp((r-delta)T)? I am struggling to understand why the curve is upward sloping (I am a bit confused...- WhizzKidd
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- commodities commodity-lease-rate futures-price gold-lease lease-rate
- Replies: 7
- Forum: P1.T3. Financial Markets & Products (30%)