Abstract
The capital asset pricing model has most often been applied to securities markets. Recent studies have used models of capital market equilibrium to examine also the pricing of commodity contracts. Dusak [3] first applied the capital asset pricing model to commodity futures prices for corn, wheat, and soybeans. More recently, Black [1] has derived expressions for the expected change in the price of futures contracts and expressions for the values of forward commodity contracts and commodity options. To date, however, there has not been a test of the capital asset pricing model for spot commodity prices. The spot price of a commodity is the price at which it can be bought or sold for immediate delivery. There are some reasons why the capital asset pricing model may not apply as well to spot commodity prices as it does to security prices. Because most commodities are produced only during certain seasons
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
