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Given a Stock Index with a Value of $1,200, an Anticipated

Question 20

Multiple Choice

Given a stock index with a value of $1,200, an anticipated dividend of $45, and a risk-free rate of 6%, what should be the value of one futures contract on the index?


A) $1,227.00
B) $1,070.00
C) $993.40
D) $995.09
E) $1,000.00

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