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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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Learning Outcome Statements
describe the concept of risk neutrality in derivatives pricing
CFA® 2024 Level I Curriculum, Volume 5, Module 10.