1Professor, F-27, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar-125001, Haryana, India
2Research Scholar, F-27, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar-125001, Haryana, India
Online published on 10 September, 2019.
The objective of this review paper is to provide a comprehensive synthesis of previous studies regarding the mispricing in futures contracts. On the basis of pertinent literature, it has been revealed that mispricing leads to pricing inefficiency and arbitrage opportunities for traders in the derivatives market. The paper emphasizes on the dimensions of mispricing such as theoretical framework, price discovery, volatility and pricing efficiency in the index futures and single stock futures. The present paper highlights the issues in mispricing in futures contract.
Mispricing, Index futures, Single Stock Futures, Price discovery, arbitrage
