- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 6. Pricing and Valuation of Futures Contracts
- Subject 1. Why do Forward and Futures Prices Differ?
CFA Practice Question
The price of a futures contract will equal the price of an otherwise equivalent forward contract if ______
B. interest rates are positively correlated with future prices.
C. interest rates are negatively correlated with future prices.
A. interest rates are uncorrelated with future prices.
B. interest rates are positively correlated with future prices.
C. interest rates are negatively correlated with future prices.
Correct Answer: A
User Contributed Comments 1
| User | Comment |
|---|---|
| kingirm | If..means it changes from market to market ie country to country ? |