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:

Bilateral Hyperacusis

A condition characterized by an increased sensitivity to normal environmental sounds in both ears.

Perceptive Hearing Loss

A type of hearing loss resulting from damage to the inner ear or the neural pathways from the inner ear to the brain, also known as sensorineural hearing loss.

Bilateral

Pertaining to or affecting both sides of the body.

Measurement Unit

Standard quantities used to specify measurements.