What Is the Growth Rate of an Index Futures Price

question 8

Multiple Choice

What is the growth rate of an index futures price in the risk-neutral world?

• A) The excess of the risk-free rate over the dividend yield
• B) The risk-free rate
• C) The dividend yield on the index
• D) Zero

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Definitions:

Expected Product

The outcome that is predicted to result from a chemical reaction under specified conditions, based on the reactants and the reaction mechanism.

Solvolysis

A chemical process where the solvent plays a crucial role in the breaking of bonds in substrates, leading to the formation of products.

Chiral

Describes a molecule that cannot be superimposed on its mirror image, essentially having a non-symmetrical arrangement of atoms.

Alkyl Halide

An organic compound containing a halogen atom (chlorine, bromine, fluorine, or iodine) bonded to an alkyl group.