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 continuously compounded dividend yield is 3 percent,and the futures contract 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:

Ecological Perspective

An approach focusing on how human behavior and interactions are shaped by the broader ecosystem, including social and physical environments.

Community Psychology

A branch of psychology that studies the relationships of individuals within their communities and the wider society, aiming to improve quality of life.

Ecological Perspective

A viewpoint that emphasizes understanding individuals within their physical, social, and cultural environments and how these environments impact behavior and development.

Environments

Describes the surroundings or conditions in which a person, plant, or animal lives or operates, encompassing both natural and built settings.