spot-price

  1. Nicole Seaman

    P1.T3.716. Arbitrage and the cost of carry model (Hull Chapter 5)

    Learning objectives: Differentiate between investment and consumption assets. Define short-selling and calculate the net profit of a short sale of a dividend-paying stock. Describe the differences between forward and futures contracts and explain the relationship between forward and spot prices...
    • Nicole Seaman
    • Thread
    • arbitrage cost-of-carry forward-contract forward-price futures-contract futures-prices hull short-selling spot-price
    • Replies: 0
    • Forum: FRM® Practice Questions
  2. Nicole Seaman

    P1.T3.709. Futures contracts (Hull Chapter 2, continued)

    Learning objectives: Explain the convergence of futures and spot prices. Describe the role of a clearinghouse in futures and over-the-counter market transactions. Describe the role of collateralization in the over-the-counter market and compare it to the margining system. Identify the...
    • Nicole Seaman
    • Thread
    • collateralization futures-contract futures-market hull margining-system over-the-counter-market spot-price
    • Replies: 0
    • Forum: FRM® Practice Questions
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