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The Relationship of Forwards and Futures Is Best Represented by the Following

Question 3

Multiple Choice

The relationship of forwards and futures is best represented by the following statement(s)


A) If futures price movements and interest rate movements are positively correlated,then futures prices will be higher than forward prices.
B) If futures price movements and interest rate movements are negatively correlated,then futures prices will be lower than forward prices.
C) If futures price movements and interest rate movements are uncorrelated,then futures and forward prices will coincide.
D) All of the above.

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