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Assume there are no transaction costs. If the current price of an asset is above its forward price, then, most probably, a) The asset pays
Assume there are no transaction costs. If the current price of an asset is above its forward price, then, most probably,
a) The asset pays dividends
b) The asset is a consumption asset
c) There are storage costs for the asset
d) Either (a) or (b)
e) Either (a) or (c)
f) Either (b) or (c) g) None of the above follow are
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