Question: Suppose there is a strong negative correlation between interest rates and the asset price. Which of the following would you expect to be true? Group
Suppose there is a strong negative correlation between interest rates and the asset price. Which of the following would you expect to be true?
Group of answer choices
The forward price is greater than the expected future spot price.
The forward price is less than the futures price.
The forward price is less than the expected future spot price.
The forward price is greater than the futures price.
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