In the Absence of Arbitrage Opportunities, the Forward Contract Price

question 76

True/False

In the absence of arbitrage opportunities, the forward contract price should be equal to the current spot price plus interest.

---

Definitions:

Kinetic Sculptures

Artworks with parts that move, either by air, motor, or human interaction, creating visual or sound experiences.

Alexander Calder

An American sculptor known for inventing the mobile, a type of moving sculpture made with delicately balanced or suspended shapes that respond to touch or air currents.

Engineering

The application of scientific and mathematical principles towards the design, construction, and maintenance of structures, machines, and systems to solve problems and achieve practical goals.

Cadeau

A French word meaning "gift," often used in the context of art to describe a piece given as a present or to denote a work’s conceptual underpinning as a gift to the viewer.