When forwards with shorter maturity can be more expensive than forwards with longer maturity? Assume the underlying asset is a financial asset and there are
When forwards with shorter maturity can be more expensive than forwards with longer maturity? Assume the underlying asset is a financial asset and there are no transaction costs A) When short-term interest rates are lower than long-term interest rates and assets does not pay dividends B) When short-term interest rates are higher than long-term interest rates and assets does not pay dividends C) When the underlying asset pays dividends and the term structure of interest rates is flat D) Both (A) and (C) are correct E) Both (B) and (C) are correct F) None of the above
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