What are three reasons that U.S. Treasury futures prices are different than the corresponding forward price, which relate to the institutional features of the U.S. Treasury futurescontract? Does it increase or lower the futures price compared to an otherwise identical contract without these features?
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This assignment was a brief discussion about the reasons of difference between the US treasury futures prices and forward futures prices and how it would impact on each other for lowering or increasing the price rates? This paper represented the significantly important question was discussed in trading market, these days. Literature survey also suggested that there are many algorithms based on this relationship, which could quantitatively explain the same.