The Following Is NOT an Implication of the Cost-Of-Carry Relation

question 6

Multiple Choice

The following is NOT an implication of the cost-of-carry relation for valuing a stock index futures contract:

• A) the futures price depends directly upon the level of the stock market index
• B) if the stocks in the index increase the level of dividend payments over the life of the futures contract,the futures price will fall,with everything else constant
• C) if the level of interest rates increases,the futures price will increase,with everything else constant
• D) if the level of interest rates increases,the futures price will decrease,with everything else constant
• E) None of these answers are correct.

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Definitions:

Structural Abnormalities

Physical defects in any body part, organ, or system that are present at birth or develop over time, often impacting functionality or health.

Infertility Problems

Challenges or conditions that prevent conception or carrying a pregnancy to term.

Ovulating

The phase of a woman's menstrual cycle during which an egg is released from the ovary.

Fallopian Tubes

Pair of tubes along which eggs travel from the ovaries to the uterus, and the site where fertilization usually occurs.