Given a Stock Index with a Value of $1,200, an Anticipated

question 61

Multiple Choice

Given a stock index with a value of $1,200, an anticipated dividend of $45, and a risk-free rate of 6%, what should be the value of one futures contract on the index?

• A)$1,227.00
• B)$1,070.00
• C)$993.40
• D)$995.09

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Definitions:

Enabling Statute

A law that creates an agency, commission, or other governmental entity and grants it specific powers.

Legislative-Type Hearing

A hearing that resembles those conducted by legislative bodies, often involving policy or law-making discussions and decisions.

Cross-Examination

The questioning of a witness in a court of law by the party opposing the one who produced the witness.

Administrative Agencies

Government bodies responsible for executing laws, issuing regulations, and overseeing compliance within a specific area or sector.