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If the Stock Market Index Is at a Level of 1,120

Question 16

Multiple Choice

If the stock market index is at a level of 1,120 and the one-year forward on the index is 1,210,what is the implied repo rate in continuously-compounded terms (assuming zero dividends on the index) ?


A) 5.72%
B) 6.52%
C) 7.72%
D) 8.62%

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