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 "profit," which of the below statements is TRUE?

A) Profit = Total proceeds - Total outlay
B) Profit = F + yP + (P - rP)
C) Profit = Total outlay - Total proceeds
D) Profit = P + yP - (P + rF)