Which of the Following Is True When F_0,T < E(S_T)

question 37

Multiple Choice

Which of the following is true when F_0,T < E(S_T) ?

• 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.

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Definitions:

Labour Market

The supply and demand dynamics of workers, where employers seek to hire and workers seek to find employment.

Forecasting HR Demand

The process of estimating the future human resource needs of an organization based on its business operations, strategic goals, and external market trends.

International Setting

The global context in which businesses operate, encompassing different cultures, laws, and economic environments.

Conflict Resolution Skills

The abilities required to effectively resolve disagreements or disputes in a constructive manner.