Multiple Choice
Suppose that the current level of the Standard and Poor's Index is 950.The prospective dividend yield on S&P500 stocks is 3%,and the risk-free 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) 998
C) 979
D) 1026
Correct Answer:
Verified
Correct Answer:
Verified
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