Solution-Suggest a forward contract on the stock market

Consider a forward contract on a stock market index. Identify the false statement. Everything else being constant,

A. The forward price depends directly upon the level of the stock market index.

B. The forward price will fall if underlying stocks increase the level of dividend payments over the life of the contract.

C. The forward price will rise if time to maturity is increased.

D. The forward price will fall if the interest rate is raised.

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