A Forward Contract That Began Earlier Matures on May 15

question 1

Multiple Choice

A forward contract that began earlier matures on May 15.The value of the contract is $3,the spot is $100,a zero-coupon bond maturing on May 15 is worth $0.98,and the forward price is $100.The arbitrage profit that you can make today by trading one forward contract and other securities would be:

• A) 0
• B) $1
• C) $1.50
• D) $3.75
• E) None of these answers are correct.

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Definitions:

Attributional Regret

A feeling of regret that arises from thinking about how different actions or behaviors might have led to a better outcome.

Behavioral Aggregation

The process of considering multiple instances of behavior over time to provide a comprehensive view of an individual's actions or tendencies.

Attitude-Behavior Inconsistency

The phenomenon where there is a discordance between what one professes to believe and how one actually behaves.

General Attitude

A broad, enduring evaluation of people, objects, advertisements, or issues.