Spreads Flashcards
1
Q
What is an intramarket/interdelivery spread
A
it involves the purchase and sale of the same commodity, on the same exchange, but different delivery months.
2
Q
What is an Intermarket spread
A
The purchase and sale of the same commodity on two diff exchages
3
Q
In a bull market, spreads in stock index futures are expected to narrow or widen?
A
widen
Deferred month futures prices will fall faster than near in a bear market, causing a narrowing of spreads in index futures.
Vs
Deferred month futures prices will rise more than near in a bull market, causing spreads to widen
4
Q
A
