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In the Absence of Transactions Costs,for the Same Maturity and Currency

Question 16

Multiple Choice

In the absence of transactions costs,for the same maturity and currency:


A) the futures price is always higher than the forward rate.
B) the forward rate is always higher than the futures price.
C) the futures price and the forward rate are the same.
D) the futures price and the forward rate are not related.

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