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When Dividend-Paying Assets Are Involved, the Spot-Futures Parity Relationship Can

Question 42

Multiple Choice

When dividend-paying assets are involved, the spot-futures parity relationship can be stated as ________.

A) F₁ = S₀(1 + r_f)
B) F₀ = S₀(1 + r_f − d) ^T
C) F₀ = S₀(1 + r_f + d) ^T
D) F₀ = S₀(1 + r_f) ^T

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