For an SPI Futures Contract Where the Risk-Free Rate Is

question 29

True/False

For an SPI futures contract where the risk-free rate is 5% p.a.and the underlying spot dividend yield is 2%,the futures price will be above that of the spot before maturity.

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Definitions:

Confidence Interval

A span of values calculated from sample statistics, which is likely to embody the value of a hidden population parameter.

Mean

A measure of central tendency which is calculated by adding up all the values in a data set and then dividing by the number of values.

Population Standard Error

The standard deviation of the distribution of a sample mean over multiple samples from the same population.