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It Need not be the best.
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of contracts fall into the category of derivatives. Such instruments are priced according to the movement of the underlying asset (stock, physical commodity, index, etc.). The aforementioned category is named "derivatives" because the value of these instruments are derived from another asset class and thus need not reflect the real value for it for the future estimated price.
No. The price of financial futures comes from arbitrage and it has nothing to do with expectations.
Agreed with the answer:
Divyesh Patel
Agreed with Venkitaraman and Divyesh. The structure of the derivative future are generally based on the best assumption made on the past performance of a specific currency or commodity, which is not real.
No, has nothing to do with expectations of exchange rate.
Agree with Mr. venkitaraman
Since demand and supply position of commodities will affect the actual price, theoretical estimated price may not be actual price.
AGREE WITH MR VENKITARAMAN & MR DIVYESH ANSWERS
not all time
price of future is the best estimate of the exchange rate
