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Basic Question 2 of 9
As the carry benefits increase, the forward price ______.
B. decreases
C. may increase or decrease
A. increases
B. decreases
C. may increase or decrease
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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Learning Outcome Statements
explain the difference between the spot and expected future price of an underlying and the cost of carry associated with holding the underlying asset
CFA® 2025 Level I Curriculum, Volume 5, Module 4.