Question: Question 5 Consider the following statements: . Statement 1: Given that changes in interest rates have a negligible impact on the underlying, an increase in

Question 5 Consider the following statements: . Statement 1: Given that changes in interest rates have a negligible impact on the underlying, an increase in the risk-free rate will lead to an increase in the forward price. . Statement 2: An increase in the expected future price of the asset will result in an increase in the forward price. Which of the following is most likely? a) Only Statement 1 is correct. h) Only Statement 2 is correct. c) Both statements are incorrect

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