The Inclusion of the Following in the Cost of Carry

question 60

Multiple Choice

The inclusion of the following in the cost of carry model will increase the futures price

• A) Dividends
• B) Storage costs
• C) Interest rate
• D) a and b
• E) None of the above

---

Definitions:

Sampling Error

The discrepancy between the statistical characteristics of a sample and those of the overall population, arising because the sample is not perfectly representative.

Mean Number

The average value of a set of numbers, calculated by dividing the sum of all the numbers by the count of the values.

Binomial Variable

A type of random variable that takes on one of two possible outcomes, for instance, success or failure, often with a fixed probability of occurrence.

Race

A socially constructed category that groups people based on physical characteristics, such as skin color or facial features.