If the Futures Rate Is Lower Than the Forward Rate

question 107

True/False

If the futures rate is lower than the forward rate, astute investors would attempt to simultaneously buy futures and sell forward. Such actions would place downward pressure on the futures price and upward pressure on the forward rate.

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Definitions:

Beta-Amyloid

A protein fragment snipped from an amyloid precursor protein that, in excessive amounts, can form plaques in the brain and is a hallmark of Alzheimer's disease.

Protein Tau

A protein associated with the stabilization of microtubules in nerve cells, whose abnormal accumulation is linked to neurodegenerative diseases like Alzheimer's.

Plaques

Deposits of fatty substances, cholesterol, cellular waste products, calcium, and fibrin in the inner lining of an artery.

Cognitive Reserves

The mind's resilience to withstand neurological damage due to aging or other factors, often linked to an individual's level of mental engagement and education.