Finance School of management Spot-Futures Price Parity for Gold a contract with life t F=1+r+h .o This is not a causal relationship but the forward and current spot are jointly determined in the market If we know one. then the law of one price determines that we know the other uesTc11 Finance School of Management Spot-Futures Price Parity for Gold ❖ A contract with life T: ( ) 0 F 1 r h S T = + f + ❖ This is not a causal relationship, but the forward and current spot are jointly determined in the market ❖ If we know one, then the law of one price determines that we know the other