All Else the Same, a Decrease in the Dividend Yield

question 61

Multiple Choice

All else the same, a decrease in the dividend yield of a stock index will _________ the price of a futures contract in the index.

• A) increase
• B) decrease
• C) not change
• D) Void the contract. This materially changes the underlying index.
• E) None of the above.

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Definitions:

Housing Prices

The cost at which residential properties are bought and sold, influenced by factors such as location, demand, and economic conditions.

Worldwide Recession

A period of global economic downturn characterized by reduced industrial activity, unemployment, and decreased spending and investment.

Barack Obama

He served as the 44th President of the United States from 2009 to 2017, and is noted for being the first African American to hold the office.

Popular Abroad

A term used to describe something, such as a concept, product, or cultural phenomenon, that enjoys widespread popularity or recognition outside its country of origin.