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Basic Question 8 of 10
Which of the following is negatively related to the forward price?
B. Carrying benefits
C. Spot price
A. Interest rate
B. Carrying benefits
C. Spot price
User Contributed Comments 2
User | Comment |
---|---|
khalifa92 | carry benefits include dividends interest and convenience yield |
bushi | Forward prices maybe greater than or less than the underlying spot price, depending on the specific cost of carry associated with owning the underlying asset. |
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Craig Baugh
Learning Outcome Statements
describe the carry forward model without underlying cashflows and with underlying cashflows;
CFA® 2025 Level II Curriculum, Volume 5, Module 31.