For this question, you are required to go to https://www.bursamalaysia.com and answer the following questions.

1. What is the current price of KLCI? (1 mark)

2. What is the current price of FKLI? (1 mark)

3. Based on your answer in 1 and 2 above, is the market in contango or backwardation? (2 marks)

Note:

1. Current price = The price you observe NOW, i.e. the moment when you start answering this question) please mention the time

Which of the following is not true concerning futures and forwards?

Select one: i. A forward contract is a private and customizable agreement that settles at the end of the agreement and is traded over-the-counter. ii. A futures contract has standardized terms and is traded on an exchange, where prices are settled on a daily basis until the end of the contract. iii. The prices for both futures and forwards can be estimated using cost-of-carry model. iv. Both forward and futures contracts involve the agreement between two parties to buy and sell an asset at a specified price by a certain date. v. Forwards are highly liquid in comparison to futures