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Basic Question 6 of 9
If the total costs of holding an asset exceed the total benefits, then what value the forward contract of that asset will have at the initiation for the long party?
B. Negative value
C. Zero value
A. Positive value
B. Negative value
C. Zero value
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain the difference between the spot and expected future price of an underlying and the cost of carry associated with holding the underlying asset
CFA® 2025 Level I Curriculum, Volume 5, Module 4.