The 4-Month Futures Price on a Non-Dividend-Paying Stock Is $23

question 61

Multiple Choice

The 4-month futures price on a non-dividend-paying stock is $23.60.The risk-free rate is 2.25 percent and the market rate is 10.45 percent.What is the spot rate for this stock if spot-futures parity exists?

• A)$23.39
• B)$23.43
• C)$23.51
• D)$23.64
• E)$23.78

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