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Cederburg Tech is trading at $472.91. - If Cederburg Tech hits $473 today you stand to lose $1m. - The market is bullish about Cederburg
Cederburg Tech is trading at $472.91. - If Cederburg Tech hits $473 today you stand to lose $1m. - The market is bullish about Cederburg Tech. You short 3 and 6 month forwards/futures on Ceberburg Tech. - The forward/futures price starts to fall. What will happen to the stock price in the absence of arbitrage?
1.Increase
2.Decrease
3.Stay constant
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