Which of the Following Is not Considered a "Cost of Carry

question 19

Multiple Choice

Which of the following is not considered a "cost of carry"?

• A) Commissions for physical storage
• B) An opportunity cost for the net amount of invested capital
• C) A premium for the convenience of consuming the asset now
• D) A risk premium for uncertainty
• E) All of the above are considered costs of carry.

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Definitions:

Wage Rate

The amount of money that is paid to a worker for a specified quantity of labor, usually expressed per hour or piece of work done.

Cobb-Douglas

A type of production function used in economic modeling to represent the relationship between two or more inputs (typically labor and capital) and the output they produce.

Labor Earnings

The income earned by workers for their labor, typically measured in terms of wages or salaries.

Endowed

Having been provided or supplied with a particular attribute, resource, or piece of knowledge naturally or by circumstance.