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Suppose that the current level of the Standard and Poor's Index is 950. The prospective dividend yield on S&P 500 stocks is 3 percent, and the risk-free interest rate is 5 percent. What is the value of a one-year futures contract on the index? (Assume all dividend payments occur at the end of the year.)
Consumer Protection Law
Regulations designed to safeguard consumers from unfair, deceptive, or fraudulent practices in the marketplace.
Online Transactions
The process of buying, selling, or exchanging goods, services, or information via the internet.
Bilateral Contract
A contract in which there is an exchange of promises: both parties assume an obligation.
Unilateral Contract
A contract in which only one party makes a promise or undertakes a performance to induce a second party to perform, without the second party similarly promising or performing.
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