Solved

A Hypothetical Futures Contract on a Nondividend-Paying Stock with a Current

Question 23

Multiple Choice

A hypothetical futures contract on a nondividend-paying stock with a current spot price of $100 has a maturity of 4 years. If the T-bill rate is 7%, what should the futures price be?


A) $76.29
B) $93.46
C) $107
D) $131.08

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions