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Basic Question 6 of 9

If the total costs of holding an asset exceed the total benefits, then what value the forward contract of that asset will have at the initiation for the long party?

A. Positive value
B. Negative value
C. Zero value

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

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.