Multiple Choice
Which of the following is true when F0,T < E(ST) ?
A) Occurs when long hedgers outnumber short hedgers.
B) Occurs when short hedgers outnumber long hedgers.
C) The market is said to be in contango.
D) The market is said to be in normal contango.
E) The pure expectations hypothesis holds.
Correct Answer:
Verified
Correct Answer:
Verified
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