Convergence

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Convergence

The movement of the price of a futures contract toward the price of the underlying cash commodity. At the start, the contract price is usually higher because of time value. But as the contract nears expiration, and time value decreases, the futures price and the cash price converge. More generally, convergence trading involves taking two related assets that have different prices with the expectation that prices will converge (the cheaper asset is purchased and the more expensive is sold short).

Convergence

The fact that the futures price and the spot price for a given asset approach one another as a futures contract on that asset approaches maturity. At maturity, the two prices should be equal. The existence of convergence is the basis for the theory that forward rates equal future spot rates, though this idea is more controversial.

convergence

The process by which the futures price and the cash price of an underlying asset approach one another as delivery date nears. The futures and cash prices should be equal on the delivery date.
References in periodicals archive ?
We selected the orthologous gene sets which have undergone adaptive evolution that were also on the site of mutually exclusive AA substitution to identify convergent evolution by adaptive selection pressure for the monotocous or polytocous traits.
Therefore, while HGT, convergent evolution and coevolution of BE traits seems less likely, we cannot rule out the possibility of extensive genome reduction in akaryal species.
Certainly, the low sequence identity could also be seemingly explained by convergent evolution, which means rhodopsin gene appeared independently in microbes and Metazoa.
Future studies should be able to identify whether the protein that mediates high-affinity choline transport in the sea urchin is indeed highly homologous to the transporter in mammalian brain, or whether the two proteins represent convergent evolution. Regardless of the actual amino acid sequences of the proteins, the main importance, as studied here, lies in the fact that the transporter plays a similar trophic role in sea urchin development as in mammalian brain, and that it responds to neurotoxicants in the same way.
We tested the hypothesis that convergent evolution of intertidal fishes from central California and central Chile, both cool-temperate regions, has allowed for community convergence by comparing the feeding guilds of Californian fishes with guilds of Chilean fishes.
Condors and vultures, the great gliders of the mountain heights, have very different phylogenetic origins, although convergent evolution means they show many similarities.
Since the Atlantic silverside is often found in the same habitat as the killifishes, the similarities in their visual systems may be due to convergent evolution.
This process, called convergent evolution, is apparent in dolphins and sharks--one's a mammal, the other's a fish.
Phylogenetic analysis also indicates that similarity in structure among communities of fish (Winemiller 1991), anoles (Losos 1992), and vultures (Hertel 1994) is the result of convergent evolution in similar environments.
"It is widely accepted that some unrelated plants exhibit similar characteristics under similar environmental conditions, a process known as convergent evolution," said the co-author.
It would not be the first time that species in different evolutionary lines separately evolved similar characteristics, a phenomenon known as convergent evolution.
Trends in the evolution of body size and brain size are covered, as are biogeographic patterns and instances of convergent evolution. In chapter 8, the authors explore some of the insights that the fossil record can give into the evolution of development in cetaceans.