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:

Inventory Items

Goods and materials that a business holds for the purpose of sale or production.