Multiple Choice
Exhibit 21.5
Use the Information Below for the Following Problem(S)
The S&P 500 stock index is at 1100. The annualized interest rate is 3.5% and the annualized dividend is 2%.
-Refer to Exhibit 21.5.Calculate the price of the futures contract now.
A) 1108.59
B) 1102.75
C) 1139.79
D) 1123.19
E) None of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q17: Some forward contracts, particularly in the foreign
Q44: An investor who wants a long position
Q45: Exhibit 21.12<br>Use the Information Below for
Q47: In the absence of arbitrage opportunities,the forward
Q49: Exhibit 21.10<br>Use the Information Below for the
Q50: In your portfolio you have $1 million
Q51: Exhibit 21.12<br>Use the Information Below for
Q52: Assume that you manage a $50 million
Q53: Exhibit 21.12<br>Use the Information Below for
Q139: Interest rate parity is a key concept