If Spot-Futures Parity Exists for an Index Future Then the Future

question 83

Multiple Choice

If spot-futures parity exists for an index future then the future price must equal the:

• A)spot price.
• B)present value of the spot price at the risk-free rate.
• C)present value of the spot price at the market rate.
• D)future value of the spot price at the risk-free rate.
• E)future value of the spot price at the market rate.

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Definitions:

Conservation

The act of preserving, protecting, or restoring natural resources and the environment.

Myers-Briggs Type Indicator

A psychological assessment tool that categorizes individuals into 16 personality types based on preferences in how they perceive the world and make decisions.

Jung's Psychological Types

A theory proposed by Carl Jung that categorizes individuals according to their preference in using their mental capacities, such as thinking vs. feeling or sensing vs. intuition.

Inconclusive

Describes results or data that do not clearly support a specific outcome, decision, or understanding, often indicating the need for further investigation.