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The Spot Rate on a Non-Dividend-Paying Stock Is $15

question 76

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The spot rate on a non-dividend-paying stock is $15.70. The risk-free rate is 3.15% and the market rate is 10.75%. What is the 3-month futures rate if spot-futures parity exists?


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Precautions

Measures taken in advance to prevent something dangerous, unpleasant, or inconvenient from happening.

Allergic Response

An immune system reaction that occurs when the body's defense mechanisms overact to a normally harmless substance.

Substance

A form of matter with distinct properties and composition, such as a chemical element or compound.

Pathogen

Microorganisms such as bacteria, viruses, fungi, or parasites that can cause disease in their host.

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