In a Simple Cost-Of-Carry Model with Dollar Dividends,we

Multiple Choice

In a simple cost-of-carry model with dollar dividends,we:

A) lower the stock price by the present value of all future dividends
B) lower the stock price by the present value of all future dividends paid over the forward's life
C) lower the stock price by more than the amount of the dividends due to taxes and transactions costs
D) lower the stock price by less than the amount of the dividends due to the signaling effect of dividends
E) adjust the quantity of shares held for dividends and not the stock price