Hi,
Can someone help explain this term.
"As the Futures contract approaches maturity, the spot price should converge with the
Futures price"
Sorry I do not find much explanation in the the Notes. I am not clear how the Spot price of a commodity will converge as per Future Price.
Thanks in advance.
idcnik01
Can someone help explain this term.
"As the Futures contract approaches maturity, the spot price should converge with the
Futures price"
Sorry I do not find much explanation in the the Notes. I am not clear how the Spot price of a commodity will converge as per Future Price.
Thanks in advance.
idcnik01