A Futures Price Must Be Greater Than or Equal to the Current

question 61

True/False

A futures price must be greater than or equal to the current spot price,plus the carrying cost.

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Definitions:

Normal Model

A statistical model, also called the normal distribution, that describes how continuous data is distributed, shaped like a symmetric bell curve.

Standard Deviations

Measures that quantify the amount of variation or dispersion of a set of data values from the mean.

Probability

The determination of how probable an event is, denoted as a number from 0 to 1.

Uniform Density

Uniform density refers to a type of distribution in which every outcome in a range has an equal probability of occurring, often represented in physics and probability theory.