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

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