This preview shows page 1. Sign up to view the full content.
Unformatted text preview: is probably quite low although the YTM will be really high. 1(e) False: The market price of a share of stock equals the discounted value of the stream of future dividends per share, using the appropriate discount rate. 1(f) False: If the net convenience yield is higher than the riskless interest rate, the future price will exhibit backwardation. 1...
View Full Document
This note was uploaded on 01/19/2011 for the course 15 15.407 taught by Professor Wang during the Fall '03 term at MIT.
- Fall '03