A Futures on a Stock with a Continuous Dividend Yield

question 34

Multiple Choice

A futures on a stock with a continuous dividend yield of 1.6 percent is currently selling for $93.12. The futures expires in four months, and the risk-free rate of interest is 5.3 percent. What is the current stock price?

• A) $94.25
• B) $92.06
• C) $91.53
• D) $93.18
• E) $92.00

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