PRMIA Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition 8006 Question # 79 Topic 8 Discussion

PRMIA Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition 8006 Question # 79 Topic 8 Discussion

8006 Exam Topic 8 Question 79 Discussion:
Question #: 79
Topic #: 8

The forward price of a physical asset is affected by:


A.

the spot price, the risk-free rate, carrying costs, any other cash flows from holding the asset and the volatility of spot prices


B.

the spot price, the risk-free rate, carrying costs, any other cash flows from holding the asset and the time to maturity of the forward contract


C.

the spot price, the risk-free rate, carrying costs and any other cash flows from holding the asset


D.

The spot price of the asset and the market's prevailing view of the commodity's direction in the future


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