In the Absence of Arbitrage, the Futures Price at Maturity

question 3

Multiple Choice

In the absence of arbitrage, the futures price at maturity should equal

• A) The price at inception plus interest on the margin account for the period of the contract.
• B) The spot price of the underlying asset at that point.
• C) The price at inception plus the storage cost for the asset over the contract period.
• D) The price of the underlying asset minus a convenience yield.

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Definitions:

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The ability of employees to adapt to changes in their work environment or job responsibilities, often involving variable schedules or skillsets.

Time And Motion Studies

Systematic examinations and analyses of work processes to improve efficiency by reducing waste and unnecessary actions.

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A clearly defined or precise moment or period on a timeline.

Customized Approach

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