- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 5. Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities
- Subject 2. Pricing and Valuation of Forward Contracts
CFA Practice Question
Which of the following derivative instruments is least likely to differentiate between the price and the value?
B. Swaps
C. Options
A. Futures
B. Swaps
C. Options
Correct Answer: C
Options have the same price and the value. If the price and value differ, then there is an arbitrage opportunity. Forwards, futures, and swaps have different price and value.
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