Answer: Less than the cost of carry for a non-dividend-paying stock.

The correct answer is **A** because dividends reduce the net cost of carry. The cost of carry represents the net expenses and benefits of holding an asset, including opportunity costs and ownership expenses, minus any benefits like dividends or coupons. For a dividend-paying stock, the dividend income lowers the overall cost of carry compared to a non-dividend-paying stock.

Author: LeetQuiz Editorial Team