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

question 11

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
• E) $1000.00

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Definitions:

Pulp Cavity

The central part of a tooth made up of living connective tissue and cells called odontoblasts.

Dentin

The hard but porous tissue located below the enamel and cementum of the teeth, which surrounds the core of dental pulp.

Crown

The visible part of a tooth above the gum line, or a type of dental restoration that fully covers or "caps" a damaged tooth.

Peristalsis

The involuntary contractions and relaxations of muscles in the digestive tract that move food along the digestive process.