According to the Cost of Carry Model, the Relationship Between

Multiple Choice

According to the cost of carry model, the relationship between the spot (S₀) and futures price (F_0,T) is

A) S₀ = F_0,T/(1 + r_f) ^T.
B) S₀ = F_0,T(1 + r_f) ^T.
C) S₀ + F_0,T = (1 + r_f) ^T.
D) S₀ = F_0,T + (1 + r_f) ^T.
E) S₀ - F_0,T = (1 + r_f) ^T.