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A test of the efficiency of the aluminium and copper markets at the London Metal Exchange

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  • Gross, Martin

Abstract

In a futures market hedgers can secure a certain price for a commodity at a future delivery date. The futures price also conveys information about the cash price at the maturity of the futures contract in that it reflects the different cash price expectations of the market participants at the time of contracting. Such information will be particularly important for agents not fully hedged as well as for market participants planning for future production or use. This paper will concentrate on information aspects of futures prices and will disregard the security trade aspect.

Suggested Citation

  • Gross, Martin, 1985. "A test of the efficiency of the aluminium and copper markets at the London Metal Exchange," Kiel Working Papers 243, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:243
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    1. Richard E. Just & Gordon C. Rausser, 1981. "Commodity Price Forecasting with Large-Scale Econometric Models and the Futures Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 197-208.
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