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.

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Definitions:

Personal Power

Personal power is the capacity of an individual to influence others based on personal attributes and qualities rather than formal authority, such as charisma, expertise, or relational connections.

Stress

A psychological and physical reaction to demands, pressures, or threats, which can affect one's mental and physical health.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit the organization or individuals within it.

The Rocks

Often referring to fundamental or very solid and reliable elements within a particular context, though without more context, its specific meaning can vary.