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A. If the yield curve is fully inverted (downward-sloping), then the one-year forward rates must be negative. (TRUE FALSE) B. If the yield curve is
A. If the yield curve is fully inverted (downward-sloping), then the one-year forward rates must be negative. (TRUE FALSE) B. If the yield curve is fully inverted, then, according to the Expectations Hypothesis, the one-year interest rate is expected to decline in the future. (TRUE/FALSE) C. In 1989, the Hunt brothers used large numbers of short futures contracts and large positions in physical silver to try to manipulate silver prices. (TRUE/FALSE) D. According to Contango theory, the futures price for a commodity is above the expectation of the future spot price because speculators are willing to pay a premium to go long the contract. (TRUE FALSE) E. Spread-Futures Parity implies that the futures price for a single-stock future contract must be higher than the current stock price. (TRUE FALSE)
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