Which of the Following Is True When F_0,T < E(S_T)

question 102

Multiple Choice

Which of the following is true when F_0,T < E(S_T) ?

• A) occurs when long hedgers outnumber short hedgers
• B) occurs when short hedgers outnumber long hedgers
• C) The market is said to be in contango.
• D) The market is said to be in normal contango.
• E) The pure expectations hypothesis holds.

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Definitions:

Delayed Conditioning

A conditioning process where the conditioned stimulus (CS) starts and continues until the unconditioned stimulus (US) is presented.

Temporal Conditioning

A form of conditioning in which the temporal interval between stimuli rather than an external stimulus is the predictive factor for the occurrence of a conditioned response.

Delayed Conditioning

A form of classical conditioning where there is a time gap between the presentation of the conditioned stimulus and the unconditioned stimulus.

Trace Conditioning

A form of classical conditioning where the conditioned stimulus and unconditioned stimulus are presented separately with a time interval between them.