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In this article, we study the volatility of Spots and Futures of Crude Oil using daily data from the period 2010-2013. We examine both the Crude Oil Spots and Crude Oil Futures traded on the Pakistan Mercantile Exchange. Our main findings suggest that (1) shocks tend to persist over a long period of time for both Crude Oil Spots and Crude Oil Futures; and (2) shocks have asymmetric effect on the volatility. Hence our findings indicate that behavior of Crude Oil Spots prices and Crude Oil Future prices tends to vary over time.

Abdul Rafay, Usman Javed Gilani, Muhammad Abu Bakar Naeem, Maham Ijaz. (2015) Volatility Modeling for Spot and Futures of Crude Oil – Evidence from Pakistan, Abasyn Journal of Social Sciences, Volume-08, Issue-2.
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