8.1 Learning Outcomes:
Describe the basic concepts of price and value for futures and forward contracts.
Determine the spot price of an asset given the cost of storage, the net interest, and the risk premium.
Determine the theoretical fair price of futures and forward contracts.
Discuss contango, backwardation, and convenience yield.
Describe Put-Call forward/futures parity and the pricing of options on futures.
8.2 Action Required:
Chapter: 9
Videos
Watch the short video at the following link:
https://lms.seu.edu.sa/bbcswebdav/xid-1034686_1
8.3 Test your Knowledge (Question):
Q. Discuss contango and backwardation?
8.4 Instructions:
Post your answer on the discussion board usi