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future closing price = 100- interest rate +_ ( unexpected basis )
when we should add basis and when we should deduct basis
The futures price and (100 – interest rate) will fall linearly to zero. If the futures price is currently lower, then it will be lower on the date of the transaction. If the futures price is currently higher, then it will be higher on the date of the transaction.
I really do suggest that you watch the free lectures.
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