A Stock Is Currently Selling for $48

question 47

Multiple Choice

A stock is currently selling for $48.50 a share and has a dividend yield of 1.8 percent. The risk-free rate is 3.5 percent. What is the 2-month futures price on this stock?

• A) $48.27
• B) $48.41
• C) $48.56
• D) $48.64
• E) $48.70

---

Definitions:

Immigration Reform and Control Act

A U.S. federal law enacted in 1986 aimed at controlling and managing immigration, notably by making it illegal to hire undocumented immigrants.

Eligibility

The state of being qualified or entitled to participate in or receive something based on set conditions.

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.

Pension Plans

Financial arrangements that provide retirees with income during retirement, typically funded by employers or the government.