Finance School of management Chapter 14: Contents Distinction between forward The " Implied Risk-Free Rate Futures Contracts The forward Price is not a The economic Function of Forecast of the Spot Price Futures markets The role of speculators Forward-Spot Parity with Cash Payouts Relationship between Commodity Spot futures Implied" Dividends Prices The foreign exchange parity Extracting Information from Relation Commodity Futures prices The role of expectations in Spot-Futures Price Parity for Determining Exchange Rates Gold Financial futures uesTc2 Finance School of Management Chapter 14: Contents ❖ Distinction Between Forward & Futures Contracts ❖ The Economic Function of Futures Markets ❖ The Role of Speculators ❖ Relationship Between Commodity Spot & Futures Prices ❖ Extracting Information from Commodity Futures Prices ❖ Spot-Futures Price Parity for Gold ❖ Financial Futures ❖ The “Implied” Risk-Free Rate ❖ The Forward Price is not a Forecast of the Spot Price ❖ Forward-Spot Parity with Cash Payouts ❖ “Implied” Dividends ❖ The Foreign Exchange Parity Relation ❖ The Role of Expectations in Determining Exchange Rates