Chartered Financial Analyst Level 1
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If the net cost of carry is zero, the forward price of a commodity is most likely:
A
Lower than the commodity's spot price compounded at the risk-free rate over the contract's duration.
B
Equivalent to the commodity's spot price compounded at the risk-free rate over the contract's duration.
C
Higher than the commodity's spot price compounded at the risk-free rate over the contract's duration.