alleryStart learning →If r = 6%, income yield q = 2%, storage cost u = 1% and convenience yield y = 0, the cost of carry c = r - q + u - y is:
A9%
B3%
C4%
D5%
Answer & Solution
Correct answer: D. 5%
c = 6 - 2 + 1 - 0 = 5%.
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