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

question 19

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) $1,343.40
• B) $62.00
• C) $1,418.44
• D) $1,524.25

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Definitions:

Infanticide

The deliberate act of killing an infant or very young child, which can occur due to various cultural, social, or psychological reasons.

Under five

A term commonly used in public health to refer to children aged zero to four years, reflecting a critical period for child development and health interventions.

Accidental deaths

Fatalities resulting from unforeseen or unexpected events, often preventable.

SARS outbreak

refers to the global epidemic caused by the Severe Acute Respiratory Syndrome coronavirus that emerged in 2002-2003, characterized by severe respiratory illness and a significant number of deaths.