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Basic Question 6 of 10

As the carry benefits increase, the forward price ______.

A. increases
B. decreases
C. may increase or decrease
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User Contributed Comments 1

User Comment
dbedford Think of benefits as payouts. So as the items pays out its value over time it's future value is decreased
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe the carry forward model without underlying cashflows and with underlying cashflows;

CFA® 2025 Level II Curriculum, Volume 5, Module 31.