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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 |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
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® 2024 Level I Curriculum, Volume 5, Module 4.