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Given a Stock Index with a Value of $1,125, an Anticipated

Question 11

Multiple Choice

Given a stock index with a value of $1,125, an anticipated dividend of $33, and a risk-free rate of 4%, what should be the value of one futures contract on the index?


A) $1137.00
B) $1070.00
C) $993.40
D) $995.09
E) $1000.00

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