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If the Futures Rate Is Lower Than the Forward Rate

question 65

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If the futures rate is lower than the forward rate, astute investors would attempt to simultaneously buy futures and sell forward. Such actions would place downward pressure on the futures price and upward pressure on the forward rate.

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Definitions:

Craft Unionism

represents a model of trade unions focusing on skilled workers in a specific craft or trade, aiming to protect their interests and maintain high standards.

CIO's Attitude

The general perspective or approach taken by the Congress of Industrial Organizations, a federation of unions that organize workers in industrial unions in the United States and Canada, towards labor issues and worker rights.

Women

Refers to adult human females, often discussed within the context of gender equality and rights issues.

Positions of Leadership

Roles or titles within an organization responsible for decision-making and guiding its overall direction.

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