Multiple Choice
What would be the spot price if a stock index futures price were $75,the risk-free rate were 10 percent,the continuously compounded dividend yield is 3 percent,and the futures contract expires in three months?
A) $73.70
B) $77.48
C) $72.60
D) $76.32
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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