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 dividend yield 3 percent,and the futures 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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Definitions:

Common Ancestry

The concept that different species share a common ancestor, a fundamental principle in evolutionary biology.

Different Ancestors

Refers to organisms that do not share a recent common ancestor, leading to diversity in evolutionary lineages.

Genetic Code

A series of protocols that govern how genetic information, found in DNA or RNA, is interpreted and transformed into proteins within living cells.

Universal

Pertaining to or applicable to all members of a class, group, or category; widely or generally applicable.