The Risk-Free Rate Is 5% and the Dividend Yield on an Index

question 14

Multiple Choice

The risk-free rate is 5% and the dividend yield on an index is 2%. Which of the following is the delta with respect to the index of a one-year futures on the index?

• A) 0.98
• B) 1.05
• C) 1.03
• D) 1.02

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Definitions:

Disappearance

The act of someone or something going missing or being removed from sight or consideration, often invoking concern or mystery regarding their whereabouts or status.

Allied Governments

Nations that are allied, or united in partnership, typically referring to countries that join forces during wartime or in opposition to a common threat.

Einsatzgruppen

Paramilitary units of Nazi Germany that were responsible for mass killings, primarily by shooting, during World War II, especially of Jews, Romani, and political dissidents.

Mobile Killing Units

Squads deployed by Nazi Germany during World War II, responsible for mass killings, primarily by shooting.