The Spot Rate on a Non-Dividend-Paying Stock Is $42

question 33

Multiple Choice

The spot rate on a non-dividend-paying stock is $42.30.The risk-free rate is 3.75 percent and the market rate is 11.50 percent.What is the three-month futures rate if spot-futures parity exists?

• A) $42.14
• B) $42.54
• C) $42.69
• D) $42.82
• E) $43.89

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Definitions:

Henry Highland Garnet

An African American abolitionist, minister, and orator known for advocating the violent overthrow of slavery.

Slaves Revolts

Uprisings by enslaved people against their captors and the oppressive systems of slavery, often aiming for freedom and significant changes.

Free Speech

The right to express any opinions without censorship or restraint.

Abolitionists

Individuals who advocated for the immediate emancipation of slaves and the end of racial discrimination and segregation in the 19th-century United States.