On the Information Content of Futures Prices, Application to LME Nonferrous Metal Futures

N. Martinot, J.-B. Lesourd and B. Morard

Working Papers from Ecole des Hautes Etudes Commerciales, Universite de Geneve-

Abstract: The objective of operations on futures markets may be either hedging or speculation. In this paper, we wish to give a desciption of futures markets with two groups of operators with heterogeneous expectations: hedgers-speculators, and pure speculators. The existence of carry-over costs is taken into account in the case of commodity trading, as well as in the case of financial futures. An equation, giving a simplified expression of the futures price, is derived. Applications to nonferrous metal futures (aluminium, copper and nickel) commodity markets are proposed.

Keywords: MARKET; SPECULATION; MANAGEMENT; EXPECTATIONS (search for similar items in EconPapers)
JEL-codes: G11 G13 G14 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2000
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:ehecge:2000.12

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