Forward and Futures Prices Will Be Equal Prior to Expiration

question 42

True/False

Forward and futures prices will be equal prior to expiration if interest rates are certain or if futures prices and interest rates are correlated.

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Definitions:

Abortion

The medical or surgical termination of a pregnancy before the fetus can survive outside the uterus.

Ethical Duty

The obligation to adhere to moral principles and standards in decision-making and actions.

Ethical Dilemma

A situation in which a person must choose between two or more morally correct but mutually exclusive actions.

Decision Model

A systematic approach to making choices that involve identifying, evaluating, and selecting among a set of alternatives based on criteria.