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Spot futures parity theorem |
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Spot futures parity theoremDescribes the theoretically correct relationship between spot and futures prices. Violation of the parity relationship gives rise to arbitrage opportunities.Spot futures parity theorem Similar MatchesInterest rate futures contractInterest rate futures contractA futures contract based on an interbank deposit rate or an underlying debt security. The value of the contract rises and falls inversely to changes in interest rates. Universal stock futuresUniversal stock futuresA range of standardised futures contracts on the shares of individual companies.The futures contract is an agreement between buyer and seller to buy or sell a given quantity of shares at some time in the future at a pre-determined price. The contract is cash-settled, which means that the stock does not actually have to be delivered, but the parties reconcile accounts based on the difference between the share price at the time of settlement and the contract price.Other features:you can go long or shortthere is no stamp duty to payyou can trade on marginyou have access to a wide range of global equitiesIn January 2001 The London International Financial Futures and Options Exchange (LIFFE) launched universal stock futures on an international list of leading global companies from eight countries. FuturesFuturesA term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange. Index futuresIndex futuresA futures contract on an index (such as a foreign stock index) in the futures market. Swiss Options and Financial Futures Exchange (SOFFEX)Swiss Options and Financial Futures Exchange (SOFFEX)The Swiss derivatives market with the first fully electronic trading system in the world, now called Eurex Zurich AG. Further SuggestionsFutures commission merchant (FCM)Currency futures contract Futures market Commodity futures contract Rolling of Futures Tokyo International Financial Futures Exchange Underlying futures contract New York Futures Exchange (NYFE) South African Futures Exchange (SAFEX) Theoretical futures price futures contract London International Financial Futures and Options Exchange Commodity Futures Trading Commission (CFTC) Hong Kong Futures Exchange (HKFE) futures Sydney Futures Exchange (SFE) Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) Securities and Futures Authority Foreign currency futures contract Futures contract Commodity Futures Trading Commission Futures Commission Merchant Mercato Italiano Futures (MIF) National Futures Association Futures contract multiple |
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