Which of the Following Is Not Needed When Calculating the Implied

question 23

Multiple Choice

Which of the following is not needed when calculating the implied repo rate for stock index futures?

• A)futures price
• B)conversion factor
• C)time-to-expiration
• D)spot price
• E)none of the above

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Definitions:

Risk-Free Asset

is an investment that is expected to deliver a guaranteed return with no risk of financial loss.

Expected Rate

Anticipated return on an investment, often considering the risk and time value of money.

Standard Deviation

Standard deviation quantifies the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the spread of a data set.