The Relationship of Forwards and Futures Is Best Represented by the Following

question 22

Multiple Choice

The relationship of forwards and futures is best represented by the following statement(s)

• A)If futures price movements and interest rate movements are positively correlated,then futures prices will be higher than forward prices.
• B)If futures price movements and interest rate movements are negatively correlated,then futures prices will be lower than forward prices.
• C)If futures price movements and interest rate movements are uncorrelated,then futures and forward prices will coincide.
• D)All of the above.

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Definitions:

Proactive Interference

The phenomenon where older memories interfere with the recall of new information.

Serial-Order Effect

The tendency of a person to recall the first and last items in a series best, and the middle items worst.

Proactive Interference

A phenomenon where old information inhibits the ability to remember new information.

Alzheimer's Disease

A progressive neurological disorder that causes memory loss, cognitive decline, and ultimately, loss of ability to perform even simple tasks, due to brain cell degeneration.