n NISM Certifications
VIII NISM Series VIII
Medium

Identify the correct formula for the Cost of Carry model.

Practice question from NISM Series VIII - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Price of Futures = Cost of carry

  2. B

    Price of Futures = Spot price

  3. Price of Futures = Spot + Cost of carry

    Correct answer

  4. D

    Price of Futures = Spot - Cost of carry

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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