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Basic Question 2 of 3

What is the impact of the risk aversion in the spot price of an asset?

A. The higher the risk aversion, the higher the spot price.
B. The higher the risk aversion, the lower is the spot price
C. Risk aversion has no impact on the spot price of an asset

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Craig Baugh

Craig Baugh

Learning Outcome Statements

describe the concept of risk neutrality in derivatives pricing

CFA® 2024 Level I Curriculum, Volume 5, Module 10.