Consider the "Reverse Cash and Carry Trade" Where You Buy

Multiple Choice

Consider the "reverse cash and carry trade" where you buy the futures contract, short sell Asset XYZ, and invest or lend 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 TRUE?

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) None of these