Multiple Choice
Suppose that the current level of the S&P 500 Index is 1100.The prospective dividend yield is 3%,and the current risk-free interest rate is 7%.What is the value of a one-year futures contract on the index? (Assume all dividends are paid at the end of the year.)
A) 1056
B) 1144
C) 1210
D) 995
Correct Answer:
Verified
Correct Answer:
Verified
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