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Basic Question 6 of 9
If the total costs of holding an asset exceed the total benefits, then what value the forward contract of that asset will have at the initiation for the long party?
B. Negative value
C. Zero value
A. Positive value
B. Negative value
C. Zero value
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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® 2024 Level I Curriculum, Volume 5, Module 4.