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Which of the Below Statements Is FALSE

Question 18

Multiple Choice

Which of the below statements is FALSE?


A) A cash and carry trade strategy includes selling a futures contract and borrowing cash to purchase a security that is "carried" to the futures settlement date.
B) A reverse cash and carry trade strategy includes buying a futures contract, short selling a security and lending the proceeds.
C) There exists a futures price that would prevent the opportunity for the riskless arbitrage profit.
D) An equilibrium futures price is a futures price where any higher or lower futures price would disallow riskless arbitrage profits.

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