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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF ACCOUNTING AND FINANCE

A Comprehensive Study on Normal Backwardations in Futures Markets


Author(s): Jeong W. Lee

Citation: Jeong W. Lee, (2013) "A Comprehensive Study on Normal Backwardations in Futures Markets," Journal of Accounting and Finance, Vol. 13, Iss. 1, pp. 115 - 121

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This article examines the theory of the normal backwardation (or contango) and forecasting theory in
futures markets. This study finds evidence on the extent to which these two seemingly opposing theories
have been operative in futures markets for last 24 years. The study shows that normal backwardation (or
even contango) is not general characteristic of futures markets. Each market is unique. Behaviors of some
futures prices are quite consistent with a priori expectations. Surprises, however, come from financial
futures contracts in that extreme forms of backwardation and contango are very evident here, whereas
many may believe that forecasting skills are most needed in these markets.