The S&P 500 Index Is Priced at $950

question 14

Multiple Choice

The S&P 500 Index is priced at $950.46.The annualized dividend yield on the index is 1.40%.What is the price of a 6-month prepaid forward contract on the S&P 500 Index?

• A) $943.83
• B) $950.00
• C) $964.26
• D) $984.21

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Definitions:

Buffet

A service providing a variety of food and dishes displayed on a table or counter, allowing diners to serve themselves.

Binge-Eating Disorder

A disorder characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort.

Bulimia Nervosa

A disorder involving cycles of excessive eating followed by efforts to avoid weight gain through purging.

Purging

Engaging in behaviors such as vomiting or using laxatives to expel food from the body, often associated with eating disorders.