A stock is currently selling for $104.12, and has a continuous dividend yield of 1.8 percent. What is the price of a futures contract on the stock that expires in five months if the risk-free rate of interest is 4.5 percent?
A) $105.28
B) $102.94
C) $106.05
D) $105.73
E) $106.32

Question

Quizplus · Accepted Answer

The Answer of A stock is currently selling for $104.12, and has a continuous dividend yield of 1.8 percent. What is the price of a futures contract on the stock that expires in five months if the risk-free rate of interest is 4.5 percent?
A) $105.28
B) $102.94
C) $106.05
D) $105.73
E) $106.32

A Stock Is Currently Selling for $104