To Prevent Arbitrage,the Futures Price Must Be

question 55

Multiple Choice

To prevent arbitrage,the futures price must be:

• A)less than (or equal to)the current spot price plus the carrying price.
• B)greater than (or equal to)the current spot price plus the carrying price.
• C)less than the present value of all carrying costs.
• D)greater than the present value of all carrying costs.

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Definitions:

PO

A medical abbreviation for "per os," Latin for "by mouth," indicating that medication or food should be taken orally.

Nifedipine Extended Release

A form of medication designed to release the active ingredient, nifedipine, slowly over time to treat conditions such as high blood pressure and angina.

PO

An abbreviation for "per os," a latin term meaning "by mouth," used in medical prescriptions.

Tablets

Portable, touchscreen computing devices that are larger than smartphones but smaller than laptops.