If the present value of storage cost

单选题 If the present value of storage costs exceeds the present value of its convenience yield, then the commodity’s forward price is most likely:

A、 less than the spot price compounded at the risk-free rate.

B、 the same as the spot price compounded at the risk-free rate.

C、 higher than the spot price compounded at the risk-free rate.

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相关试题

单选题 Which of the following statements about exchange-traded derivatives is least accurate? Exchange-traded derivatives:

A、are liquid.

B、are standardized contracts.

C、carry significant default risk.

单选题 Interest rate swaps are:

A、highly regulated.

B、equivalent to a series of forward contracts.

C、contracts to exchange one asset for another.

单选题 Arbitrage prevents:

A、market efficiency.

B、earning returns higher than the risk-free rate of return.

C、two assets with identical payoffs from selling at different prices.

单选题 Which of the following derivatives is a forward commitment?

A、Stock option.

B、Interest rate swap.

C、Credit default swap.

单选题 Derivatives are least likely to:

A、improve liquidity.

B、provide price information.

C、prevent arbitrage.

单选题 A custom agreement to purchase a specific T-bond next Thursday for $1,000 is:

A、an option.

B、a futures contract.

C、a forward commitment.

单选题 Which of the following statements most accurately describes a derivative security? A derivative:

A、always increases risk.

B、has no expiration date.

C、has a payoff based on an asset value or interest rate.

单选题 A call option is:

A、the right to sell at a specific price.

B、the right to buy at a specific price.

C、an obligation to buy at a certain price.