Given a Stock Index with a Value of $1,500,an Anticipated

question 81

Multiple Choice

Given a stock index with a value of $1,500,an anticipated dividend of $62 and a risk-free rate of 5.75%,what should be the value of one futures contract on the index?

• A) $1343.40
• B) $62.00
• C) $1418.44
• D) $1524.25
• E) None of these is correct