Indexes futures, : Price discovery, Arbitrage, Threshold co-integration, Multivariate threshold autoregressive model

Futures price depends on the cash price of a commodity. when the futures price exceeds the current cash price, traders may buy stock that underlie the futures contract and sell futures to earn arbitrage profits transaction costs is a key factor in determining the relative rate of price discovery Trading of equity derivatives in India began in June 2000. Two contracts were introduced simultaneously, the future and the option on the NSE Nifty-50 index underlying