i can't figure out how to estimate the futures closing price using the basis risk approach....do we ADD or SUBTRACT the unexpired basis risk to the current future price, how do we do that?
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currency futures
10y ago#1If the current futures price is higher than the current spot, then it will always be higher (and vice versa) - the two will just get closer together. That is the only way of knowing whether to add or subtract.
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