As with options - time values, volatility factors, other greeks, etc. Or, are futures priced entirely intrinsically?
Anything you can tell me about futures pricing and purchasing is helpful. I know very little. Thanks for your help!|||not entirely intrinsic, no. As interest rates rise, I know this is a novel idea but sometimes they do rise, the value of the future tends to drop slightly due to the amount of the deposit you are required to make, although it can be in t-bills which are interest bearing. But the main factor effecting the value of the future is future expectations for the settlement month.|||Futures are nothing like options because they must be settled, so it is all about the value of the underlying thing.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment