A Stock Is Currently Selling for $38

question 8

Multiple Choice

A stock is currently selling for $38.50 a share and has a dividend yield of 1.75%. The risk-free rate is 3.5%. What is the 2-month futures price on this stock?

• A)$38.27
• B)$38.41
• C)$38.56
• D)$38.61
• E)$38.70

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Definitions:

Own Ethics

Personal or individual moral principles that govern one's behavior and decision-making.

Kohlberg's Moral Development

A theory that proposes six stages of moral development through which individuals progress as they grow older and gain maturity.

Goal Statement

A clear and specific declaration of the objectives an individual or organization aims to achieve.

Time Bound

Restricted or limited by a predetermined timeframe for completion.