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What is the formula used to calculate the theoretical fair value of a futures contract?

Spot Price - (1 + Risk-Free Rate * (Days to Expiry/365)) - Dividend

Spot Price + (1 + Risk-Free Rate * (Days to Expiry/365)) + Dividend

Spot Price * (1 + Risk-Free Rate * (Days to Expiry/365)) - Dividend

Spot Price / (1 + Risk-Free Rate * (Days to Expiry/365)) + Dividend

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What is the term used to describe the difference between the spot price and the futures price of an underlying asset?

Premium

Discount

Basis or Spread

Contango

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When the futures price is higher than the spot price, the futures market is said to be in:

Backwardation

Contango

Discount

Arbitrage

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What is the name of the trading strategy that involves buying an asset in the spot market and simultaneously selling it in the futures market?

Calendar Spread

Index Arbitrage

Cash and Carry Arbitrage

Quantitative Trading

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A calendar spread involves:

Buying and selling futures contracts of different underlying assets with the same expiry

Buying and selling options contracts of the same underlying asset with different expiries

Buying and selling futures contracts of the same underlying asset with different expiries

Buying and selling options contracts of different underlying assets with the same expiry