Determine the Amount by Which a Stock Index Futures Is

question 29

Multiple Choice

Determine the amount by which a stock index futures is mispriced if the stock index is at 200,the futures is at 202.5,the risk-free rate is 6.45 percent,the dividend yield is 2.75 percent,and the contract expires in three months.

• A)underpriced by 0.64
• B)overpriced by 2.5
• C)overpriced by 9.76
• D)overpriced by 0.64
• E)underpriced by 2.5

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The capacity to have an effect on the character, development, or behavior of someone or something.

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The degree to which objectives are achieved and the extent to which targeted problems are solved, in various contexts including business, therapy, and medicine.

Threats

Expressions or actions that aim to cause harm or force compliance, often used as a means of control or coercion.

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Commitments or assurances given by one party to another about the occurrence or non-occurrence of certain future events.