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Basic Question 0 of 7
Which of the following is negatively related to the forward price?
B. Carrying benefits
C. Spot price
A. Interest rate
B. Carrying benefits
C. Spot price
User Contributed Comments 2
| User | Comment |
|---|---|
| khalifa92 | carry benefits include dividends interest and convenience yield |
| bushi | Forward prices maybe greater than or less than the underlying spot price, depending on the specific cost of carry associated with owning the underlying asset. |
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Learning Outcome Statements
explain the difference between the spot and expected future price of an underlying and the cost of carry associated with holding the underlying asset
CFA® 2025 Level I Curriculum, Volume 5, Module 4.