Module 03 Forward and Futures Pricing
Cost of Carry Model
The Cost of Carry Model determines the futures or forward price of an asset by considering the co...
Expectation Approach
The Expectations Approach posits that the futures price reflects the market's consensus of the ex...
Basis Normal Backwardation and Cantango
Contango A market condition where futures prices are higher than the current spot price. This sit...
Margin Account Operation
In futures trading, margin accounts are used to manage credit risk between parties. They ensure t...