The Spot Price of an Asset Is Positively Correlated with the Market

question 2

Multiple Choice

The spot price of an asset is positively correlated with the market. Which of the following would you expect to be true? choose one)

• A) The forward price equals the expected future spot price.
• B) The forward price is greater than the expected future spot price.
• C) The forward price is less than the expected future spot price.
• D) The forward price is sometimes greater and sometimes less than the expected future spot price.

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Definitions:

West And Central Africa

A geographic and cultural region of Africa, known for its diverse cultures, languages, and histories.

South Asia

A region in Asia comprising countries like India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, and Maldives, known for its cultural diversity and history.

Latin America

A region comprising countries in the Americas where Romance languages (primarily Spanish and Portuguese) are spoken, including parts of North, Central, and South America, and the Caribbean.

Classify Objects

The act of organizing objects, ideas, or information into categories based on shared characteristics or criteria.