CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

Futures markets are able to provide the price discovery function because ______.

I. spot prices and futures prices are unrelated.
II. a relationship exists between spot and futures prices.
III. futures prices allow forecasts of future spot prices.
A. II and III
B. I and III
C. I, II and III
Explanation: II and III are the market characteristics upon which the price discovery function depends.

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