The Jump Size Distribution of the Commodity Spot Price and Its Effect on Futures and Option Prices

Figure 1

Absolute error of the futures prices for the out-of-sample (January–July 2015) with maturities: 6, 18, and 44 months. The absolute error for the DM is the red dotted line, the JDMN is the blue dash line, and the JDMExp is the black solid line.