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

---

Definitions:

Salmon Flies

Artificial fishing baits designed to imitate the adult form of salmon flies used in fly fishing.

Population

The entire group of individuals or instances about whom the research is concerned and to which the results of studies are intended to be generalized.

Annual Rainfall

A meteorological measurement indicating the total amount of precipitation received over a year in a given area.

Drought

An extended period of deficient rainfall relative to the statistical multi-year average for a region, resulting in water scarcity.