easy · FRM Part 1 Financial Markets and Products

A simple risk-management situation: neither party pays an upfront contract value when the forward price is fair.

Which concept is illustrated by this case: “neither party pays an upfront contract value when the forward price is fair”?

  1. Cash-and-carry arbitrage
  2. Forward contract value at inception
  3. Reverse cash-and-carry
  4. Income benefit

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