In the absence of arbitrage, the futures price at maturity should equal
A) The price at inception plus interest on the margin account for the period of the contract.
B) The spot price of the underlying asset at that point.
C) The price at inception plus the storage cost for the asset over the contract period.
D) The price of the underlying asset minus a convenience yield.
Correct Answer:
Verified
Q1: Futures contracts are more likely to be
Q2: When the futures-spot basis weakens
A) The difference
Q4: For a futures contract on an asset
Q5: You go short oil 10 futures contracts
Q6: The level of margining in a futures
Q7: Ignoring convenience yields, the theoretical futures price
Q8: A price tick is
A) The maximum amount
Q9: When a counterparty to a futures contract
Q10: The cheapest-to-deliver option
A) Hurts the holder of
Q11: An investor enters into a long position
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