Which of the following describes a forward contango?
A) When the forward price is less than the spot price
B) When the forward price is more than the spot price
C) When the investor owns something
D) When the investor owes something
Correct Answer:
Verified
Q1: What is the "cost of carry" equivalent
Q2: Profit from a short position in a
Q3: Assume the spot exchange rate today is
Q4: Forward contracts:
A)trade in an open market.
B)establish a
Q6: Magdalena assumes a US$ 2,000 short position
Q7: What condition is necessary to create a
Q8: Profit from a long position in a
Q9: Which of the following carries storage costs?
A)Futures
Q10: A tailor-made contract with a price that
Q11: The six-month forward rate is C$ 1.00
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