Publications
Publications
- July 1992 (Revised May 1996)
- HBS Case Collection
Note on Commodity Futures
By: Kenneth A. Froot, Jay O. Light and Nancy Donohue
Abstract
Describes how commodity futures work, what products and exchanges are available, and who the players in the commodity markets are. Also presents a careful discussion of the pricing of futures in commodity markets, focusing on cost of carry and risk premium approaches, and explaining backwardation and contango markets.
Keywords
Citation
Froot, Kenneth A., Jay O. Light, and Nancy Donohue. "Note on Commodity Futures." Harvard Business School Background Note 293-018, July 1992. (Revised May 1996.)