What Would Be the Spot Price If a Stock Index

question 47

Multiple Choice

What would be the spot price if a stock index futures price were $75,the risk-free rate were 10 percent,the continuously compounded dividend yield is 3 percent,and the futures contract expires in three months?

• A)$73.70
• B)$77.48
• C)$72.60
• D)$76.32
• E)none of the above

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