For a Treasury bill future, the cost of carry is
A) small if the riskfree rate is large.
B) increased by the value of benefits of ownership.
C) increased by the costs of ownership.
D) foregone interest.

Question

Quizplus · Accepted Answer

The cost of carry for a Treasury bill future is essentially the foregone interest, as Treasury bills are short-term government securities that do not have direct costs of ownership or benefits of ownership like dividends or rental income.

For a Treasury Bill Future, the Cost of Carry Is