In the Absence of Arbitrage Opportunities, the Forward Contract Price

question 65

Multiple Choice

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

• A) contract price.
• B) the cost of carry.
• C) margin requirement.
• D) the price discovery rate.
• E) the convenience return.

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Definitions:

Employee Free Choice

Proposed legislation aimed at making it easier for workers to join or form a union through majority sign-up or card check rather than an election.

Anonymous Phone Calls

Telephone calls made without revealing the caller's identity, often used for confidential tips or harassment.

Financial Futures

Contracts to buy or sell financial instruments or commodities at a future date, used for hedging or speculation on the future price movements.

No Solicitation Policies

Company policies that restrict or prohibit employees and outside entities from soliciting or distributing materials within the workplace.