问题
单项选择题
The main risk faced by an individual who enters into a forward contract to buy the S&P 500 Index is that
A.
A. the market may rise. |
B.
B. the market may fall. |
C.
C. market volatility may rise. |
答案
参考答案:B
解析:If the market falls, the buyer of a forward contract could pay more for the index, as determined by the price that was contracted for at the inception of the contract, than the index is worth when the contract matures. Although it is possible that a rise in interest rates could cause the market to fall, this might not always happens and thus is a secondary consideration.