Volatility Dynamics and Futures Pricing: A GARCH-Based Analysis of CAC40 Markets

The futures market is wavering with uncertainty during an hesitating interest rate monetary policy, France had sorted out from a hard Euro debt crisis between 2016 and 2019, which had left interest rate in chaos, we have experienced an econometrics model using the software technology, by calibrating our model with the futures prices of CAC40. The futures market proves to be stable in the beginning of calibration, indeed our model had respectively shown that the futures market could set a smart alarm for the monetary policy in France. The market of CAC40 index is volatile under those circumstances which finds more information in spinning a beautiful benchmark for political manoeuvring using interest rate as a way of adjusting France economics to the monetary scheme. We have estimated volatility using the Garch variant which proves empirically to be more suitable, we had found persistence and non vulnerability to past shocks.