Spot price converging towards Futures price

[afterworkguinness]

Hello on page 31 of the PDF "P1.Products+Hull--Chapters-1-7--10-&-11.pdf" it says "Remember that the basis itself converges to zero over time, as the spot price converges toward the Futures price". Isn't this the other way round ... futures prices converges to spot price ?

 

[David Harper CFA FRM]

Hi afterworkguinness, yes, agreed, to avoid confusion it should read "as the future price converges toward the spot price" Thanks!
Tagged for non-critical revision to PDF, cc: Suzanne Evans

 

[afterworkguinness]

Great. Thanks for clarifying that.