Explain how arbitrage causes the futures and spot prices to converge.
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Explain how arbitrage causes the futures and spot prices to converge.
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Arbitrage is the practice of taking advantage of price discrepancies between different markets to make riskfree profits In the context of futures and ...View the full answer
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Related Book For
Financial System Of The Economy Principles Of Money And Banking
ISBN: 9780765622464
5th Edition
Authors: Maureen Burton,Bruce Brown
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