For an arbitrageur, carrying costs consist of which of the following?
A)interest costs for the use of the funds to purchase securities less the interest earned on the securities
B)the performance bond
C)convergence fees
D)the margin requirements plus the performance bond

Question

Quizplus · Accepted Answer

Carrying costs for an arbitrageur include interest costs for the funds used to purchase securities, less the interest earned on those securities. The performance bond, convergence fees, and margin requirements are not considered carrying costs.

For an Arbitrageur, Carrying Costs Consist of Which of the Following