Given a Stock Index with a Value of $1,000, an Anticipated

question 71

Multiple Choice

Given a stock index with a value of $1,000, an anticipated dividend of $30, and a risk-free rate of 6%, what should be the value of one futures contract on the index?

• A) $943.40
• B) $970.00
• C) $1,030.00
• D) $915.09
• E) $1,000.00

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Definitions:

Homeostasis

Homeostasis is the process through which biological systems maintain internal equilibrium by adjusting physiological processes.

Brain

The central organ of the human nervous system, responsible for processing sensory information, directing motor responses, and coordinating mental functions.

Hedonism

A philosophical concept that suggests the pursuit of pleasure and intrinsic goods are the primary or most important goals of human life.

Growth Motivation

The desire to achieve personal development and self-improvement, beyond basic needs or external rewards.