|
|
|
|
|
|||||||
| International Futures Discussion board for international futures markets. |
 |
| Bookmarks | |||||||
del.icio.us
|
StumbleUpon
|
Google
|
Digg
|
Facebook
|
Furl
|
Reddit
|
Netscape
|
|
|
LinkBack | Thread Tools | Display Modes | Language |
04-28-2008, 04:59 AM
|
|||
|
|||
|
Re: Hang Seng Index Futures
The price of derivatives are supposed to be the same as the underlying on expiration due to arbitrage. However they can still be slightly off because arbitrage is not always efficient. It could be the price difference is so small that it doesn't cover execution cost and interest, or it could be the last second ticks that came in right before end of trading hours that creates the discrepancy. The point is that price between derivatives and underlyings do not have to be the same on expiration. They're very close only because arbitrager "pushes" the two together as they near expiration.
|
|
| Currently Active Users Viewing This Thread: 2 (0 members and 2 guests) | |
| Thread Tools | |
| Display Modes | |
|
|
Similar Threads
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| CBOT To Launch Futures Contract Based on Dow Jones U.S. Real Estate Index | MrPaul | Futures Laboratory | 4 | 04-03-2007 09:26 AM |
| Index Futures Week 7 | Soultrader | E-mini Futures | 2 | 02-14-2007 08:07 AM |
| Stocks vs Index Futures? | newtrader | Beginners Forum | 9 | 11-20-2006 05:33 PM |
| Index components | farkasb | Market Analysis | 4 | 11-17-2006 08:19 AM |
| Dail Goal for Index Traders? | Soultrader | Futures Laboratory | 3 | 09-29-2006 11:20 PM |
Linear Mode
