I can see that seasonality will get complicated, but your last point "you still need to pay attention to what happens when you change from one contract to another; you may need to do something to smooth that out" - what do you mean by changing from one contract to another?
Hi - thanks for the response! Your equation is for basic futures and I think what you are saying is whatever the spot price changed by as a % from one day to the next, change the corresponding futures price (using your equation) by the same %. Is that right?
Am fairly new to VaR, but I do understand how it is supposed to work for say basic stock prices historically. However how is VaR calculated when there is a forward curve of prices, as for example with Futures? The only method I can think of is taking every price for a delivery/expiry date for an...
Am fairly new to VaR, but I do understand how it is supposed to work for say basic stock prices historically. However how is VaR calculated when there is a forward curve of prices, as for example with Futures? The only method I can think of is taking every price for a delivery/expiry date for an...
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