Since futures contracts are "marked-to-market" daily,the gains and losses are settled daily.
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Q2: According to the cost of carry model,
Q5: The cost-of-carry model is useful for pricing
Q7: Some forward contracts, particularly in the foreign
Q8: A riskless stock index arbitrage profit is
Q9: The basis (Bt,T)at time t between the
Q17: The goal of a hedge transaction is
Q18: The basis is the spot price minus
Q20: In the cost of carry model, the
Q29: The inclusion of dividends in the cost
Q30: Like hedging, arbitrage results in increased returns
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