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:

Amenorrhea

The absence of menstrual cycles.

Bulimia Nervosa

An eating disorder marked by a cycle of binge eating followed by behaviors such as vomiting to prevent weight gain.

Compensatory Behavior

A mechanism aimed at counterbalancing or offsetting a perceived deficit or problem, often seen in eating disorders.

Forced Vomiting

The act of deliberately inducing vomiting, often practiced as a harmful way to control weight or after binge eating.