The Current Level of S & P 500 Index Is

question 4

Multiple Choice

The current level of S & P 500 index is 1100. The prospective dividend yield is 3%, and the current interest rate is 7%. What is the value of a one-year futures contract on the index? (Assume all dividends are paid at the end of the year.)

• A) 1177
• B) 1144
• C) 1133
• D) None of the above

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Definitions:

Water

A ubiquitous chemical substance composed of hydrogen and oxygen, essential for all known forms of life and used in a wide range of industrial processes.

Interstitial Fluid

The fluid that fills the spaces between cells in tissues, serving as a means of transporting nutrients and wastes.

Blood Plasma

The liquid component of blood that carries cells and proteins throughout the body, comprising about 55% of total blood volume.

Cells

The basic structural, functional, and biological units of all living organisms, serving as the building blocks of life.