caa a22 4500 386308772 CHVBK 20180307111538.0 cr unu---uuuuu 161130e198809 xx s 000 0 eng 10.2307/2331073 doi S002210900001317X pii (NATIONALLICENCE)cambridge-10.2307/2331073 Barnhill Theodore M. The Delivery Option on Forward Contracts: A Comment [Elektronische Daten] [Theodore M. Barnhill] Livingston contends that short futures/long cash traders can eliminate the potential costs of the quality option through use of a dynamic trading strategy. It is proposed here that if this is possible then futures prices will never reach a stable equilibrium. Alternatively, if Livingston's argument is flawed, then no risk-free arbitrage opportunities are likely to be available to either short cash/long futures or long cash/short futures traders. Under such conditions, futures prices will reach an equilibrium when the expected return and risk of each type position are equally attractive. Copyright © School of Business Administration, University of Washington 1988 Journal of Financial and Quantitative Analysis Cambridge University Press 23/3(1988-09), 343-349 0022-1090 23:3<343 1988 23 JFQ https://doi.org/10.2307/2331073 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.2307/2331073 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Barnhill Theodore M. NATIONALLICENCE 773 0- Journal of Financial and Quantitative Analysis Cambridge University Press 23/3(1988-09), 343-349 0022-1090 23:3<343 1988 23 JFQ CC0 http://creativecommons.org/publicdomain/zero/1.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-cambridge