Select an option above to see an explanation here.

A) Interest rates influence futures prices due to the cost of carry model.
B) This is incorrect because it's the opposite of the correct answer. Higher interest rates increase futures prices, and lower interest rates decrease futures prices.
C) This is incorrect because interest rates affect the value of futures contracts in all markets, not just the stock market.
D) This is incorrect because futures prices increase with higher interest rates and decrease with lower interest rates.