The Current Level of the S&P 500 Is 1,250

question 21

Multiple Choice

The current level of the S&P 500 is 1,250. The dividend yield on the S&P 500 is 3%. The risk-free interest rate is 6%. The futures price quote for a contract on the S&P 500 due to expire 6 months from now should be ________.

• A) 1,274.33
• B) 1,286.95
• C) 1,268.61
• D) 1,291.29

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Definitions:

Psychological Disorders

Mental disorders characterized by significant disturbances in an individual's cognition, emotional regulation, or behavior.

Functional Theory

a theory that explains how aspects of society operate to fulfill necessary functions, maintaining social stability and equilibrium.

Attitudes

Refers to psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Utilitarian Function

The practical or useful role served by an object, system, or behavior, typically aimed at satisfying basic needs or accomplishing tasks.