Why Must the Spot Price Equal the Futures Price on the Settlement

question 78

Essay

Why must the spot price equal the futures price on the settlement date?

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Definitions:

I Data

Information derived from an individual's experiences, behaviors, and characteristics, often used in psychological studies.

Knowledgeable Observers

Individuals with extensive understanding or insight in a particular domain, often called upon to provide evaluations or assessments based on their expertise.

Fish-and-Water Effect

A phenomenon where individuals are unaware of the prevalent cultural or environmental conditions that influence their behavior, similar to how fish may not recognize they are in water.

Self-verification

The desire and tendency of individuals to seek confirmation of their self-concept, whether positive or negative, from the external world.