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Basic Question 6 of 7
The real estate industry is sensitive to the interest rates. The companies operating in the real estate market make more profit when the interest rates decrease. Which of the following contracts is most likely to have a higher price for such companies?
B. Futures contract
C. Both will have the same price
A. Forward contract
B. Futures contract
C. Both will have the same price
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Learning Outcome Statements
compare the value and price of forward and futures contracts
explain why forward and futures prices differ
CFA® 2025 Level I Curriculum, Volume 5, Module 6.