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1 : You observe that the market price for corn for delivery in two months is 2 5 % lower than the forward price of
: You observe that the market price for corn for delivery in two months is lower than the forward price of corn for delivery in one month. You can therefore conclude that the market's view is that the spot price of corn will be lower in two months than in one month.
True or False
: A short option position on XYZ stock always gains in value when the stock price of XYZ declines.
True or False
: The value of the long forward position remains zero up to delivery time.
True or False
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