Relative to the Spot Price,the Forward Price Is

question 96

Multiple Choice

Relative to the spot price,the forward price is

• A)usually less than the spot price.
• B)usually more than the spot price.
• C)usually equal to the spot price.
• D)usually less than or more than the spot price more often than it is equal to the spot price.

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Definitions:

Unit Elastic

Describes a situation where the change in quantity demanded or supplied is exactly proportional to the change in price.

Midpoint Method

A method employed in economics for determining demand or supply elasticity through calculating the mean of the initial and final prices and quantities.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in its price.

Strategic Leader

A person who guides an organization towards long-term goals by making visionary decisions and inspiring others.