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The Spot Price of an Asset Is Positively Correlated with the Market.Which

Question 11

Multiple Choice

The spot price of an asset is positively correlated with the market.Which of the following would you expect to be true?


A) The forward price equals the expected future spot price.
B) The forward price is greater than the expected future spot price.
C) The forward price is less than the expected future spot price.
D) The forward price is sometimes greater and sometimes less than the expected future spot price.

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