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.
Correct Answer:
Verified
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