There Is a Futures Contract on a Stock That Expires

question 108

Multiple Choice

There is a futures contract on a stock that expires in nine months. The current stock price is $93.12. If the risk-free rate is 6.25 percent, what is the futures price?

• A) $96.12
• B) $98.31
• C) $97.45
• D) $96.84
• E) $97.93

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Definitions:

Skill Based Pay

A compensation system where employees are paid based on the skills, knowledge, and abilities they apply in their work.

Organization's Performance

The overall effectiveness and achievement of a company's objectives, often evaluated through financial, operational, and strategic metrics.

Performance Appraisal System

A structured process for evaluating the job performance of employees and providing them with feedback.

Industry

The collective organizations and activities involved in the production, processing, and distribution of goods and services within a particular sector.