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Forward Pricing by Replication Depends on the Following Assumption

Question 7

Multiple Choice

Forward pricing by replication depends on the following assumption:


A) That the nominal interest rate for the cost of carry is positive.
B) That long positions are easier to take in the forward contract than in the spot asset.
C) That the underlying is a traded asset which is storable.
D) That the spot asset is not a financial security.

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