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If One Buys an Asset,sells a Futures,and Holds the Position

question 9

True/False

If one buys an asset,sells a futures,and holds the position until expiration,it is equivalent to selling the asset at the original futures price.


Definitions:

Rate Of Return

Accumulation or reduction in the investment value over a chosen interval, denoted as a percentage of the investment's root cost.

Outstanding Shares

The total number of shares of stock that are currently owned by investors, including restricted shares owned by the company’s officers and insiders.

Annual Dividend

The total dividend payment a company distributes to its shareholders annually, representing a share of the profits.

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