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What Is the Growth Rate of an Index Futures Price

Question 20

Multiple Choice
What is the growth rate of an index futures price in the risk-neutral world?
A) The excess of the risk-free rate over the dividend yield
B) The risk-free rate
C) The dividend yield on the index
D) Zero

What is the growth rate of an index futures price in the risk-neutral world?


A) The excess of the risk-free rate over the dividend yield
B) The risk-free rate
C) The dividend yield on the index
D) Zero

Correct Answer:

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