Cox,Ingersoll & Ross (1981),research has found that ???_______________ ,being a key feature of futures contracts has no impact on pricing where interest rates are _____________ and it can explain differences between futures and forward prices where interest rates and underlying asset price are correlated.

A) marking-to- market, non-stochastic
B) contango, rising
C) backwardation, stagnant
D) backwardation, economically important

Question

Cox,Ingersoll & Ross (1981),research has found that ???_______________ ,being a key feature of futures contracts has no impact on pricing where interest rates are _____________ and it can explain differences between futures and forward prices where interest rates and underlying asset price are correlated.

A) marking-to- market, non-stochastic
B) contango, rising
C) backwardation, stagnant
D) backwardation, economically important

Quizplus · Accepted Answer

Cox,Ingersoll & Ross (1981),research has found that marking-to- market ,being a key feature of futures contracts has no impact on pricing where interest rates are non-stochastic and it can explain differences between futures and forward prices where interest rates and underlying asset price are correlated.

Cox,Ingersoll & Ross (1981),research Has Found That ???_______________ ,Being a Key