Futures Contracts Are Said to Exhibit the Property of Convergence

question 54

Multiple Choice

Futures contracts are said to exhibit the property of convergence because ________.

• A) the profits from long positions and short positions must ultimately be equal
• B) the profits from long positions and short positions must ultimately net to zero
• C) price discrepancies would open arbitrage opportunities for investors who spot them
• D) the futures price and spot price of any asset must ultimately net to zero

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