The Soycomplex Spread Crush: A Different Look at Market Efficiency

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1989-03

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Ohio State University. Department of Agricultural, Environmental, and Development Economics

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Significant profits from trading rules and the existence of models that outforecast futures prices provide conflicting evidence for the efficient market hypothesis. Spread trading in the soycomplex produces significant profits only at distant lengths to maturity indicating the futures market may perform different functions at different times to maturity.

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