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

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Definitions:

Introspection

The examination or observation of one's own mental and emotional processes.

Freudian Psychology

A branch of psychology founded by Sigmund Freud that emphasizes the importance of the unconscious mind, childhood experiences, and dream analysis in understanding human behavior.

Critical Thinking

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information.

Behaviorism

A scientific approach to understanding human and animal behavior, emphasizing the importance of observable actions and the environments in which they occur, while excluding internal processes like the mind.