Why must the spot price equal the futures price on the settlement date?
What will be an ideal response?
If there were differences in prices, there would be opportunity for arbitrage.
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A vertical aggregate supply schedule implies that
a. real wages cannot impact output. b. unemployment cannot impact output. c. aggregate demand is horizontal. d. the price level does not impact output.
If the economy is in a recessionary gap,
A) Real GDP is greater than Natural Real GDP. B) Real GDP is equal to Natural Real GDP. C) Real GDP is less than Natural Real GDP. D) the (actual) unemployment rate is less than the natural unemployment rate. E) a and d
Common property often results in
A) a negative externality. B) a social benefit. C) more efficient production of goods. D) exclusive rights of ownership.
The rights to own private property and to exchange goods with minimal government interference is
A. economic freedom. B. capital freedom. C. political freedom. D. population freedom.