Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 5 of 7
Continue with the last question. The futures price should be $99.71 based on our analysis if the spot price is $98, the life of the futures contract is 136 days, and the interest rate is 4.75%.
If the future is selling for $100, what should an arbitrageur do to net a riskless, positive return?
User Contributed Comments 0
You need to log in first to add your comment.
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
compare the value and price of forward and futures contracts
explain why forward and futures prices differ
CFA® 2024 Level I Curriculum, Volume 5, Module 6.