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.
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.
举一反三
- When the price of underlying asset goes up a lot, the future contract is more likely to be default、
- 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.
- 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.
- 以下各句正确的是__________。 A: An increase in demand is likely to cause a rise in prices. B: Increases in demand usually lead price increases. C: If demand increases; as a result, prices tend to rise. D: Increases in price are often resulted by increases in demand.
- When an individual firm in a competitive market increases its production, it is likely that the market price will fall.