In a one-step binomial pricing model a forward contract and a futures contract are written on the same asset and with the same time to maturity. Which of the following is true? a. The forward price and the future price cannot be equal. b. We need to know the interest rates in order to determine whether or not the forward price and the future price are equal. c. The forward price and the future price will be equal provided both contracts are margined. d. The forward price and the future price will be equal.

In a one-step binomial pricing model a forward contract and a futures contract are written on the same asset and with the same time to maturity. Which of the following is true? a. The forward price and the future price cannot be equal. b. We need to know the interest rates in order to determine whether or not the forward price and the future price are equal. c. The forward price and the future price will be equal provided both contracts are margined. d. The forward price and the future price will be equal.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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