Given a Stock Index with a Value of $1,000, an Anticipated

question 71

Multiple Choice

Given a stock index with a value of $1,000, an anticipated dividend of $30, and a risk-free rate of 6%, what should be the value of one futures contract on the index?

• A) $943.40
• B) $970.00
• C) $1,030.00
• D) $915.09
• E) $1,000.00

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