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 until the settlement date. In computing the value "from the loan," which of the below statements is TRUE?

A) P = repayment of principal of loan
B) rP = interest on loan
C) P + rP = total outlay
D) All of these