In the video lecture where u have explained that future price on the transaction date is the balancing figure by finding the basis by apportionment ..do we always deduct the basis from spot rate ?assuming the future price will always be lower than spot rate on the transaction date ?? Am I correct ..
Do we have cases where future rate is more than spot price
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Future price
8y ago#1The futures price and the spot rate will always get closer together.
So if the futures price is currently more than the spot rate, then it will always be more.
If the futures price is currently lower than the spot rate, then it will always be lower.
You add or subtract accordingly depending on which is the case.
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