FRANK J. FABOZZI, PH.D., CFA, CPA
Professor of FinanceEDHEC Business School
MARK PITTS, PH.D.
BRUCE M. COLLINS, PH.D.
Professor of FinanceWestern Connecticut State University
One of the primary concerns most traders and investors have when taking a position in futures contracts is whether the futures price at which they transact will be a fair price. Buyers are concerned that the price may be too high and that they will be picked off by more experienced futures traders waiting to profit from the mistakes of the uninitiated. Sellers worry that the price is artificially low and that savvy traders may have manipulated the markets so that they can buy at bargain-basement prices. Furthermore, ...