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Which Equation Is Used to Define the Futures Price?
A) F1(S/)S0(S/)\frac { F _ { 1 } ( S / € ) } { S _ { 0 } ( S / € ) }

Question 57

Multiple Choice

Which equation is used to define the futures price?


A) F1(S/) S0(S/) \frac { F _ { 1 } ( S / € ) } { S _ { 0 } ( S / € ) } = (1+i$(1+i) \frac { ( 1 + i _ { \$} } { \left( 1 + i _ { € } \right) }
B) F1F _ { 1 } = CuTCdTS0(ud) \frac { C _ { u T ^ { - } - C _ { d T } } } { S _ { 0 } ( u - d ) }
C) F1F _ { 1 } = ln(F/E) +.5σ2TσT\frac { \ln ( F / E ) + .5 \sigma ^ { 2 } T } { \sigma \sqrt { T } }
D) F1(S/) S0(S/) \frac { F _ { 1 } ( S / € ) } { S _ { 0 } ( S / € ) } = (1+i) (1+i$) \frac { ( 1 + i_{€} ) } { ( 1 + i _{\$} ) }

Correct Answer:

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