Given a stock index with a value of $1,100, an anticipated dividend of $27, and a risk-free rate of 3%, that should be the value of one futures contract on the index
A)$943.40
B)$970.00
C)$913.40
D)$1,106.00
E)$1,000.00

Name: Given a stock index with a value of $1,100, an anticipated dividend of $27, and a risk-free rate of 3%, that should be the value of one futures contract on the index A)$943.40 B)$970.00 C)$913.40 D)$1,106.00 E)$1,000.00
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Question

Quizplus · Accepted Answer

F = 1,100 × (1.03) - 27; F = 1,106.00.

Given a Stock Index with a Value of $1,100, an Anticipated