is happens because the speculators who believe that the market price is likely to increase will demand
more futures contracts and this increased demand will push up the prices of the futures contracts. Simi-
larly, if a number of speculators believe that the stock price will decrease by the time the futures reach
their expiry, the futures price is likely to be below the theoretical value. us, without clearly understand-
ing the market expectations of an increase or decrease in the stock price, which can result in the futures
selling at a price dierent from the theoretical price, it is dicu ...
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