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In regards to pricing future and forward, which of the following is/are true? 1. Assuming the spot price for a cryptocurrency is the same as
In regards to pricing future and forward, which of the following is/are true?
1. Assuming the spot price for a cryptocurrency is the same as oil and there is no counterparty risk, a 3-month forward contract on the cryptocurrency will be a lot higher than a 3-month forward contract on oil because the cryptocurrency is more volatile.
2. A forward contract on coffee can be bought on the NYBOT exchange.
3. A future contract will be marked-to-market on a daily basis.
A. Only 1
B. Only 3
C. 1 and 3 are true
D. 2 and 3 are true
E. All of the above
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