Multiple Choice
The current level of Standard and Poor's index is 950. The prospective dividend yield is
3%, and the interest rate is 5%. What is the value of a one-year futures contract on the index? (Assume all dividend payments occur at the end of the year.)
A) 969
B) 997.5
C) 978.5
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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