Assuming spot-futures parity holds, an increase in the dividend rate will ________ the futures price.
A) increase
B) decrease
C) not change
D) increase or decrease
E) Insufficient information.

Question

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The Answer of Assuming spot-futures parity holds, an increase in the dividend rate will ________ the futures price.
A) increase
B) decrease
C) not change
D) increase or decrease
E) Insufficient information.

Assuming Spot-Futures Parity Holds, an Increase in the Dividend Rate