Which of the Below Statements Is FALSE

question 42

Multiple Choice

Which of the below statements is FALSE?

• A) A cash and carry trade strategy includes selling a futures contract and borrowing cash to purchase a security that is "carried" to the futures settlement date.
• B) A reverse cash and carry trade strategy includes buying a futures contract, short selling a security and lending the proceeds.
• C) There exists a futures price that would prevent the opportunity for the riskless arbitrage profit.
• D) An equilibrium futures price is a futures price where any higher or lower futures price would disallow riskless arbitrage profits.

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Definitions:

Living System

An organized group of biological structures demonstrating the characteristics of life, such as growth, reproduction, responsiveness, metabolism, and homeostasis.

Predictability

The extent to which future states or occurrences can be foreseen based on current knowledge and past patterns.

Population Increase

A rise in the number of individuals within a species or area over a specific period of time.

Environmental Resistance

The sum of environmental factors such as predators, disease, and competition that limit the growth, distribution, or size of populations.