Adjemian, Michael K.; Kuethe, Todd H.; Kunda, Eugene L. - Agricultural and Applied Economics Association - AAEA - 2010
Cash and futures prices should reach equality, or converge, upon contract maturity. Traders can impose convergence … during the delivery month through arbitrage behavior: either making or taking delivery on futures contracts. If convergence … the attractiveness of hedging. Recent convergence problems in domestic commodity markets demonstrate the existence of …