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The current empirical evidence indicates that
Risk-free Rate
A forecasted return rate on a risk-free investment, usually shown through government security yields.
Futures Price
The agreed-upon price for the underlying asset in a futures contract to be paid at a future date.
Short Position
The futures trader committing to deliver the underlying asset.
S&P 500 Futures
Financial contracts that speculate on the future value of the S&P 500 index, allowing investors to predict and hedge against market movements.
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