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    Investment Analysis and Portfolio Management Study Set 1
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    Exam 15: Forward, Futures, and Swap Contracts
  5. Question
    In the Absence of Arbitrage Opportunities, the Forward Contract Price
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In the Absence of Arbitrage Opportunities, the Forward Contract Price

Question 65

Question 65

Multiple Choice

In the absence of arbitrage opportunities, the forward contract price should be equal to the current price plus


A) contract price.
B) the cost of carry.
C) margin requirement.
D) the price discovery rate.
E) the convenience return.

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