For a futures contract on an asset with no expected cash flows over the life of the contract, there should be A negative correlation between the futures price and both interest rates and the spot rate B positive correlation between the futures price and interest rates C zero correlation between the...

The correct answer is C zero correlation between the futures prices and both in ...

For a futures contract on an asset with no expected cash flows over the life of the

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For a futures contract on an asset with no expected cash flows over the life of the contract, there should be:

	A.	negative correlation between the futures price and both interest rates and the spot rate.
	B.	positive correlation between the futures price and interest rates.
	C.	zero correlation between the futures prices and both interest rates and the spot price.

Related Book For answer-question

Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Posted Date: Feb 03, 2024 03:41 AM

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Fundamentals of Futures and Options Markets

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