In a study by Heaney in 1995,the decrease in futures mispricing has been attributed to:

A) reduced maturity and increased transactions costs
B) increased transactions costs only
C) increased maturity and volume of trades
D) increased maturity and increased arbitrage traders

Question

In a study by Heaney in 1995,the decrease in futures mispricing has been attributed to:

A) reduced maturity and increased transactions costs
B) increased transactions costs only
C) increased maturity and volume of trades
D) increased maturity and increased arbitrage traders

Quizplus · Accepted Answer

Studies,including Heany (1995),have found that the degree of mispricing has apparently decreased over time,which is consistent with increased maturity in the market and an increasing prevalence of arbitrage traders.

In a Study by Heaney in 1995,the Decrease in Futures