CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

As the carry benefits increase, the forward price ______.

A. increases
B. decreases
C. may increase or decrease
Correct Answer: B

Benefits reduce the cost of carrying the asset, and that reduces the forward price.

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
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