3.3 Arbitrage Arguments is workable for the determination of the forward and futures prices of investment assets from spot and other observable variables is not possible to determine the forward and futures prices of consumption The forward price and futures price are very close to each other when the maturities of the two contracts are the same Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University3.3 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University Arbitrage Arguments • is workable for the determination of the forward and futures prices of investment assets from spot and other observable variables. • is not possible to determine the forward and futures prices of consumption. • The forward price and futures price are very close to each other when the maturities of the two contracts are the same