Assistant Professor, Department of Business Administration, Amrita Sai Institute of Science & Technology, Kanchikacherla, Krishna Dist, A.P, India
In recent years, the increasing importance of futures market in the Indian financial market has received considerable attention from researchers, academicians and financial analyst. This paper aims at finding out whether there is relevance of futures prices with theoretical futures in the Indian market. This paper studies the relevance of futures market by using analysis of variance technique. At a practical level, a better understanding of futures market can improve arbitrage opportunities of the market agents. The findings have implications for policy makers, hedgers and arbitragers.
futures market, theoretical future prices, arbitrage, volatility
