Multiple Choice
According to the cost of carry model the relationship between the spot (S₀) and futures price (F₀,T) is
A) S0 = F0,T/(1 + rf) T
B) S0 = F0,T(1 + rf) T
C) S0 + F0,T = (1 + rf) T
D) S0 = F0,T + (1 + rf) T
E) S0 - F0,T = (1 + rf) T
Correct Answer:

Verified
Correct Answer:
Verified
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