Consider the "Reverse Cash and Carry Trade" Where You Buy

question 36

Multiple Choice

Consider the "reverse cash and carry trade" where you buy the futures contract, short sell Asset XYZ, and invest or lend at a rate of r until the settlement date. In computing the value "from settlement of the futures contract," which of the below statements is TRUE?

• A) F = proceeds from sale of Asset XYZ to settle the futures contract
• B) yP = payment received from investing in Asset XYZ
• C) F + yP = total proceeds
• D) None of these

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Definitions:

Bisexual

A sexual orientation characterized by attraction to both men and women, not necessarily to the same degree or in the same way.

Phallic Fallacy

The mistaken belief that bigger male genitalia equates to better sexual prowess or masculinity.

Mistaken Belief

A belief that is incorrect or based on inaccurate information or understanding.

High Value

Something deemed of significant importance, worth, or usefulness in a particular context or by certain standards.