Question: True or false a. Hedging transactions in an active futures market have zero or slightly negative NPVs. b. When you buy a futures contract, you
True or false
a. Hedging transactions in an active futures market have zero or slightly negative NPVs.
b. When you buy a futures contract, you pay now for delivery at a future date.
c. The holder of a financial futures contract misses out on any dividend or interest payments made on the underlying security.
d. The holder of a commodities futures contract does not have to pay for storage costs, but foregoes convenience yield.
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