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:

Desires

Strong feelings of wanting or wishing for something to happen or be obtained.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Self-actualization

The achievement or satisfaction of one's own abilities and possibilities, viewed as an innate desire or necessity in every individual.

Lifelong Involvement

Continuous engagement or participation in a particular activity, cause, or field of interest throughout one's life.