Futures Contracts Resources Assignment | Homework Help Websites
February 6th, 2019
Futures Contracts
Resources
- Discussion Participation Scoring Guide.
Four factors affect the value of a futures contract on a stock index—three of which are:
- The current price of the stock index.
- The time remaining until the contract maturity date.
- The dividends of the stock index.
Identify the fourth factor, and explain how and why changes in this factor affect the value of the futures contract.
Note: This is a CFA Exam Level 2 question.
Response Guidelines
Review the posts of at least two other learners and answer the following questions, providing explanations as needed:
- How does the interest rate environment impact the futures market?
- Is the futures market isolated from essential time value of money elements?
- Would the same elements that affect futures markets impact derivatives markets also?