3.15 Forward vs futures prices Forward and futures prices are usually assumed to be the same. when interest rates are uncertain they are, in theory, slightly different A strong positive correlation between interest ates and the asset price implies the futures price is slightly higher than the forward price A strong negative correlation implies the reverse Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University3.15 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University Forward vs Futures Prices • Forward and futures prices are usually assumed to be the same. When interest rates are uncertain they are, in theory, slightly different: • A strong positive correlation between interest rates and the asset price implies the futures price is slightly higher than the forward price • A strong negative correlation implies the reverse