zephyranalyst

Well i agree that your above trade is not risk free, but the difference between buying a stock and buying a forward contract is the price you get in the future is fixed, unless the counterparty defaults and then your screwed so its not entirely risk free, but lets face it would could spend the day arguing that alot of the stuff the cfa teachs is you is not entirely applicable to the real world, thats because alot of it is just financial theory, and may not hold in practice, but its the CFAI's exam and we just have to accept that for the exam