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According to the Cost of Carry Model, the Relationship Between

Question 146

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:

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