Discounted cash flow valuation cope with expected future prices of inputs respectively. Outputs. This case describes the relationship between spot prices, forward / future prices and expected future prices. Knowing current forward rate prices alone is not enough to estimate future prices to be expected, so that the forward or future prices are not usually a good estimate of the expected future price.

Discounted cash flow valuation cope with expected future prices of inputs respectively. Outputs. This case describes the relationship between spot prices, forward / future prices and expected future prices. Knowing current forward rate prices alone is not enough to estimate expected future prices, the forward or future prices are not generally a good estimate of the expected future price.
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Lisa Meulbroek
4 pages.
Release Date: 29 March 2001. Prod #: 201109-PDF-ENG
Extracting information from the futures and forward markets: the relationship between spot prices, forward prices and expected future spot prices HBR case solution

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