Derivatives Q76
0. Which of the following statements about the price of a forward contract is most accurate?
- A
Costs incurred and benefits received by holding the underlying affect the forward price by raising and lowering it, respectively.
- B
Costs incurred and benefits received by holding the underlying effect the forward price by lowering and raising it, respectively.
- C
Costs incurred and benefits received by holding the underlying do not affect the forward price.
- Option : A
- Explanation : Costs incurred and benefits received by holding the underlying affect the forward price by raising and lowering it, respectively.
