Assume That Interest Rates Are Constant

question 10

Multiple Choice

Assume that interest rates are constant.Given a risk-free rate of 6 percent,a dividend yield of 2 percent,and index level of 1,100,then the stock market index futures price with delivery in 3 months is:

• A) 1,000.01
• B) 1,111.06
• C) 1,040.00
• D) 10,000.10
• E) None of these answers are correct.