A Stock Is Currently Selling for $38

question 66

Multiple Choice

A stock is currently selling for $38.50 a share and has a dividend yield of 1.75 percent.The risk-free rate is 3.5 percent.What is the 2-month futures price on this stock?

• A) $38.27
• B) $38.41
• C) $38.56
• D) $38.61
• E) $38.70

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Definitions:

Net Receivables

The amount of money expected to be received from accounts receivable after deducting allowances for bad debts or discounts.

Formal Instrument of Credit

A written document that acknowledges debt and specifies the terms under which it will be repaid.

Note Receivable

Note receivable is a financial asset representing a written promise to receive a specific amount of money, plus interest, by a certain date.

Notes Receivable

A claim or right to receive a determinable sum of money from another party as evidenced by a promissory note.