Given Forward Risk Neutral Dynamics, What Can Be Said of a Forward

question 13

Essay

Given forward risk neutral dynamics, what can be said of a forward price?

---

Definitions:

Instinctive Behaviour

Inborn, automatic responses to specific stimuli that are not learned but rather naturally occur in all members of a species.

Conditioning

The process of learning associations between environmental stimuli and behavioral responses, often distinguished as classical or operant conditioning.

Cognitive Components

The aspects of thinking and understanding, including perception, memory, judgment, and reasoning.

B.F. Skinner

An American psychologist and behaviorist who developed the theory of operant conditioning, emphasizing the consequences of behavior in shaping future actions.