A Stock Is Currently Selling for $28 a Share and Has

question 95

Multiple Choice

A stock is currently selling for $28 a share and has a dividend yield of 3.2%. The risk-free rate is 2.5%. What is the 6-month futures price on this stock?

• A)$27.66
• B)$27.90
• C)$28.02
• D)$28.10
• E)$28.35

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Definitions:

Warranty

A guarantee, typically by a seller to a buyer, assuring certain facts or conditions about goods or services.

Authority

The power or right, usually backed by law, to give orders, make decisions, and enforce obedience.

Banquet Cancellation

The act of calling off or terminating a planned banquet event, typically due to unforeseen circumstances or breach of contract.

Accounting Firm

A business that provides services related to financial record keeping, audit, and taxation.