Exhibit 21.10 Use the Information Below for the Following Problem(S)

question 86

Multiple Choice

Exhibit 21.10
Use the Information Below for the Following Problem(S)
The S&P 500 stock index is at 1300. The annualized interest rate is 4.0% and the annualized dividend is 2%. You are currently considering purchasing a 2-month futures contract for your portfolio.
-Refer to Exhibit 21.10.Calculate the current price of the futures contract.

• A) 1295.66
• B) 1304.34
• C) 1342.75
• D) 1379.29
• E) 1393.49

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Definitions:

Behavioral Psychology

A branch of psychology focused on the study of observable behaviors and the processes behind them.

Cognitive Psychology

The study of mental processes such as "attention, language use, memory, perception, problem-solving, creativity, and thinking."

Self-Determination Theory

A theory of motivation that emphasizes the role of intrinsic motivation in driving human behavior and the importance of psychological needs for competence, autonomy, and relatedness.

Competence

The ability to do something successfully or efficiently, often reflecting one's skillset and knowledge in a particular area.