Inter-Temporal Price Relationships with Forward Markets: A Method of Analysis
In this paper we present a method of approach to the analysis of inter-temporal price relationships in markets with forward dealings. The method involves, first, a five-fold classification of types of behaviour, and second, the application of traditional supply and demand analysis. It is used here to elucidate a simplified problem. The relevance of the classification of types of behaviour extends, we believe, beyond the narrow confines of the particular problem, whereas the method of analysis as applied to the problem may, we should like to think, serve as a basis for a more comprehensive analytical treatment of price formation in markets with forward dealings.
KeywordsMarket Risk Price Formation Present Period Future Trading Forward Market
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