The 3-month futures price on a non-dividend-paying stock is $31.80.The risk-free rate is 2.5 percent and the market rate is 9.5 percent.What is the spot rate for this stock if spot-futures parity exists?
A) $31.39
B) $31.43
C) $31.51
D) $31.60
E) $31.78
Correct Answer:
Verified
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