Two Assets And Have the Same Spot Price Today Is Expected to Grow at 10% Over the Year and Today
Two assets and have the same spot price today. Asset is expected to grow at 10% over the year and asset is expected to grow at 12%. Which of the following is true if there are no holding costs or benefits for either asset?
A) Asset 's one-year forward price will be less than that of asset .
B) Asset 's one-year forward price will be greater than that of asset .
C) Asset 's one-year forward price will be equal to that of asset .
D) None of the above can be ascertained with certainty, as it also depends on other factors.
Correct Answer:
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