The Spot Rate on a Non-Dividend-Paying Stock Is $15

question 2

Multiple Choice

The spot rate on a non-dividend-paying stock is $15.70.The risk-free rate is 3.15 percent and the market rate is 10.75 percent.What is the three-month futures rate if spot-futures parity exists?

• A) $15.48
• B) $15.82
• C) $16.01
• D) $16.13
• E) $16.24

---

Definitions:

Neurotransmitter

Chemical substances released at the end of a nerve fiber by the arrival of a nerve impulse and, by diffusing across the synapse, causes the transfer of the impulse to another nerve fiber, a muscle fiber, or some other structure.

Ion

An atom or molecule with a net electric charge due to the loss or gain of one or more electrons, essential in a wide array of biological processes.

Acetylcholinesterase

Enzyme found in the synaptic cleft that causes the breakdown of acetylcholine to acetic acid and choline, thus limiting the stimulatory effect of acetylcholine.

Acetylcholine

A neurotransmitter involved in many functions including muscle contraction and the transmission of nerve impulses in the central and peripheral nervous system.