A Stock Is Selling for $93

question 65

Multiple Choice

A stock is selling for $93.12, and a futures contract on the stock that expires in seven months is selling for $95.27. What is the risk-free rate of interest?

• A) 4.12%
• B) 3.99%
• C) 4.07%
• D) 4.23%
• E) 4.16%

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Definitions:

Planning

The process of defining an organization's strategy or direction and making decisions on allocating its resources to pursue this strategy.

Long-range Planning

The act of setting long-term goals and outlining strategies to achieve them, often encompassing a period of several years into the future.

Internet Time

A concept that reflects the acceleration of product development, innovation, and market transformation attributed to the rapid exchange of information via the internet.

Strategic Time

A planned duration allocated for formulating, executing, and reviewing strategic plans to achieve long-term organizational goals.