How Does the Expiration Date Affect the Pricing of a Futures Contract? ⎊ Path

How Does the Expiration Date Affect the Pricing of a Futures Contract?

The expiration date is a key determinant of the contract price, primarily through the cost of carry. The longer the time to expiration, the greater the potential impact of interest rates and storage costs (or funding rates in crypto) on the price, leading to a difference between the futures price and the current spot price.

This difference is the "basis."

How Does the Expiration Date of a Futures Contract Influence Its Price?

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Define “Cost of Carry” in the Context of Futures Pricing

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