menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Derivatives and Risk Management Study Set 2
  4. Exam
    Exam 8: Principles of Pricing Forwards,futures and Options on Futures
  5. Question
    Suppose There Is a Risk Premium of $0
Solved

Suppose There Is a Risk Premium of $0

Question 53

Question 53

Multiple Choice

Suppose there is a risk premium of $0.50.The spot price is $20 and the futures price is $22.What is the expected spot price at expiration?


A) $21.50
B) $22.50
C) $20.50
D) $24.50
E) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q48: Why is the initial value of a

Q49: A convenience yield is an explanation for

Q50: Under uncertainty and risk aversion,today's spot price

Q51: Put-call-futures parity is the relationship between the

Q52: Interest rate parity is essentially the same

Q54: The daily settlement brings the value of

Q55: The Black formula prices an option on

Q56: The dividend yield on a stock option

Q57: A contango market is consistent with<br>A)a negative

Q58: As soon as a futures contract is

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines