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Price Dependence and Futures Price Theory

Published online by Cambridge University Press:  10 May 2017

Steven C. Blank
Steven C. Blank*
Affiliation:
Department of Agricultural Economics, University of Arizona
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Abstract

A new interpretation of commodity futures price theory is evaluated because, currently, many products exhibit price behavior which cannot be explained with existing theory. A method for classifying products according to the particular price theory relevant to them is provided. The classification method uses the futures price dependence enforced by arbitrage opportunities in spot markets as its base. The futures markets for beef cattle and corn are used as examples.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 14 , Issue 2 , October 1985 , pp. 169 - 176
Copyright
Copyright © 1985 Northeastern Agricultural and Resource Economics Association 

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