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:

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a specific quantity of goods or services.

Income Distribution

How a nation’s total GDP is distributed amongst its population, influencing economic inequality.

Marginal Utility

The added satisfaction a consumer gains from consuming one more unit of a good or service.

Poverty

A condition where individuals or communities lack the financial resources to meet basic needs such as food, shelter, and healthcare.