Which of the Below Statements Is FALSE

question 16

Multiple Choice

Which of the below statements is FALSE?

• A) The theoretical futures price may be at a premium to the cash market price (higher than the cash market price) or at a discount from the cash market price (lower than the cash market price), depending on the value of P(r - y).
• B) The term, r - y, which reflects the difference between the cost of financing and the asset's cash yield, is called the net financing cost.
• C) The net financing cost is more commonly called the cost of carry, or simply, carry.
• D) Negative carry means that the yield earned is greater than the financing cost; positive carry means that the financing cost exceeds the yield earned.

---

Definitions:

Standard Price

The regular or fixed cost of a product or service, typically unaffected by discounts or special offers.

Customers

Individuals or entities that purchase goods or services from a business.

Customer Relationship Management (CRM)

A strategy for managing a company's interactions with current and potential customers using data analysis about customers' history with a company to improve business relationships.

Technology System

A structured arrangement of devices, software, and processes that work together to perform or facilitate specific tasks or functions.