Please someone help me understand this answer to this question. The price of a 90-day forward contract on a 90-day Treasury bill will be: A) above the current price of a 180-day T-bill. B) above the current price of a 90-day T-bill. C) either above or below the current price of a 180-day T-bill. D) equal to the current price of a 180-day T-bill. ***************** The correct answer from Schweser is A, but I don’t understand why it is not B. Could someone please explain? Thanks,

Oh well I get it now. No need to answer. thanks!

Hey dude… Could you please explaing why is “A”? I think it should be “D” to not permit arbitrage. rgds