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

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Definitions:

Linear Model

A statistical model used to describe the relationship between one or more explanatory variables and a continuous response variable by a linear equation.

Scatterplot

A graphical representation that uses dots to show the relationship between two sets of data.

Data Points

Individual pieces of factual information collected for analysis.

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.