Two Assets And Have the Same Spot Price Today Is Expected to Grow at 10% Over the Year and Today.Asset
Multiple Choice
Two assets and have the same spot price today.Asset is expected to grow at 10% over the year and asset is expected to grow at 12%.Which of the following is true if there are no holding costs or benefits for either asset?
A) Asset
's one-year forward price will be less than that of asset
B) Asset
's one-year forward price will be greater than that of asset
C) Asset
's one-year forward price will be equal to that of asset
D) None of the above can be ascertained with certainty,as it also depends on other factors.
Correct Answer:

Verified
Correct Answer:
Verified
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