Given a Stock Index with a Value of $1,125, an Anticipated

question 65

Multiple Choice

Given a stock index with a value of $1,125, an anticipated dividend of $33, and a risk-free rate of 4%, what should be the value of one futures contract on the index?

• A)$1137.00
• B)$1070.00
• C)$993.40
• D)$995.09

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Definitions:

Hyperglycemia

A condition characterized by an abnormally high level of glucose (sugar) in the blood, often associated with diabetes and can lead to serious health problems if not properly managed.

Acidosis

A condition in which there is an excess of acid in the body fluids, leading to a lower than normal pH level in the blood.

Ketones

Chemical compounds produced by the liver when the body breaks down fats for energy, commonly associated with diabetes and dieting.

Trigeminal Neuralgia

A chronic pain condition affecting the trigeminal nerve in the face, characterized by intense, episodic facial pain.