The 5-month futures price on a non-dividend-paying stock is $44.30.The risk-free rate is 3.0 percent and the market rate is 9.50 percent.What is the spot rate for this stock if spot-futures parity exists?
A) $42.43
B) $42.71
C) $43.30
D) $43.76
E) $43.99
Correct Answer:
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