Suppose That the Current Level of the Standard and Poor's

question 64

Multiple Choice

Suppose that the current level of the Standard and Poor's Index is 950.The prospective dividend yield on S&P500 stocks is 3%,and the risk-free interest rate is 5%.What is the value of a one-year futures contract on the index? (Assume all dividend payments occur at the end of the year.)

• A)969
• B)998
• C)979
• D)1026

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Definitions:

Body Composition

The ratio of different types of body tissues, including muscle, fat, bone, and water, which is used to assess health and fitness levels.

Relative Proportions

Ratios or relationships in size, quantity, or degree between elements or components.

Essential Fat

The minimum amount of body fat necessary for the maintenance of health and bodily functions, differing by gender.

Physiological Functioning

The operations and processes of living organisms and their parts, including growth, reproduction, and maintenance of health.