Consider the "Cash and Carry Trade" Where You Sell (Or

Multiple Choice

Consider the "cash and carry trade" where you sell (or take a short position in) the futures contract, purchase Asset XYZ, and borrow at a rate of r until the settlement date. In computing the value "from settlement of the futures contract," which of the below statements is FALSE?

A) F = proceeds from sale of Asset XYZ to settle the futures contract
B) yP = payment received from investing in Asset XYZ
C) F - yP = total proceeds
D) All of these