There are two forward contracts, contract 1 and contract 2, on the same underlying. The underlying makes no cash payments, does not yield any nonfinancial benefits, and does not incur any storage costs. Contract 1 expires in one year, and contract 2 expires in two years. It is most likely that the price of contract 1:
A: is equal to the price of contract 2.
B: is less than the price of contract 2.
C: exceeds the price of contract 2.
A: is equal to the price of contract 2.
B: is less than the price of contract 2.
C: exceeds the price of contract 2.
举一反三
- The price of a forward contract most likely: A: decreases as the price of the underlying goes up. B: is constant and set as part of the contract specifications. C: increases as market risk increases.
- If a contract is concluded on FOB basis, the contract price indicates the __________.
- When the price of underlying asset goes up a lot, the future contract is more likely to be default、
- During its life, the value of a forward contract is most likely equal to the price of the underlying minus the price of the: A: forward. B: forward, discounted over the original term of the contract. C: forward, discounted over the remaining term of the contract.
- According to ( ) classification, the project contract can be generally divided into total price contract, unit price contract and cost plus remuneration contract. A: Job content B: Contract scope C: Project deadline D: Payment method