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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: jt101 who wrote (732)	2/18/2003 11:47:51 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 1064

At first glance, I am not sure what they mean by future calendar spreads. Do they mean for options? I believe this refers to spreads on the futures contracts themselves. There is an interest rate factor priced in to futures contracts that depends on time to contract expiration. I assume the same people who do arbitrage of futures against cash are the same people who would be interested in calendar spreads on futures contracts. I don't know much about this approach to the market, except that a lot of big program traders play such games. programtrading.com