This video introduces basic futures pricing theory with the expected spot and arbitrage pricing approaches. Also introduces contango and backwardization.
Thank you very much for your videos, I was struggling to understand all concepts in finance and now thanks to your explanations everything seems easier to understand!
You are doing a great job Kevin, you know I have a theory that some finance practitioners don't want people to have the easy perspective of what they do to make them feel like they are the only ones that should do the job for them. However, its really very simple.
11:00 Wait, I'm confused. Which one of these describes the term structure as a 'normal market' and which one describes an 'inverted market?' And I thought contango and backwardation describes the future's relationship to the expected spot price in the future, not the current spot price.
I have questions and hope u will help to answer: 1.If the price of the usd/jpy is 116.25, what will be some usd/jpy futures price? 2. 7. If the current price is 116.25, what is a ballpark price for stop 115.35 and limit 118.52. Thanks for video.
