Assignment: Futures Contracts
Resources
• Discussion Participation Scoring Guide.
Four factors affect the value of a futures contract on a stock index-three of which are:
• The current price of the stock index.
• The time remaining until the contract maturity date.
• The dividends of the stock index.
Identify the fourth factor, and explain how and why changes in this factor affect the value of the futures contract.
Note: This is a CFA Exam Level 2 question.
Response Guidelines
Review the posts of at least two other learners and answer the following questions, providing explanations as needed:
• How does the interest rate environment impact the futures market?
• Is the futures market isolated from essential time value of money elements?
• Would the same elements that affect futures markets impact derivatives markets also?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.