Quick question all:
Let's assume that you have a Bond Future contract and you have found the underlying CTD bond.
If the interest rates increase, do I need to reprice the CTD bond's spot price before pricing the Bond Future?
How an increase on the interest rate will affect the price of the bond future?
Let's assume that you have a Bond Future contract and you have found the underlying CTD bond.
If the interest rates increase, do I need to reprice the CTD bond's spot price before pricing the Bond Future?
How an increase on the interest rate will affect the price of the bond future?