Given a Stock Index with a Value of $1,000, an Anticipated

question 23

Multiple Choice

Given a stock index with a value of $1,000, an anticipated dividend of $30, and a risk-free rate of 6%, what should be the value of one futures contract on the index?

• A)$943.40
• B)$970.00
• C)$1,030.00
• D)$915.09

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Definitions:

Revenue

The total amount of money received from the sale of goods or services, as well as from related business activities.

Sales

The activity or process of selling products or services in exchange for money; transactions between buyers and sellers.