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Given a Stock Index with a Value of $1,100, an Anticipated

Question 2

Multiple Choice

Given a stock index with a value of $1,100, an anticipated dividend of $27, and a risk-free rate of 3%, what should be the value of one futures contract on the index?


A) $943.40
B) $970.00
C) $913.40
D) $1,106.00
E) $1,000.00

Correct Answer:

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