The 4-month futures price on a non-dividend-paying stock is $25.00.The risk-free rate is 2.5 percent and the market rate is 9.0 percent.What is the spot rate for this stock if spot-futures parity exists?
A) $24.43
B) $24.71
C) $24.30
D) $24.80
E) $24.99
Correct Answer:
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