There is a futures contract on a stock that expires in 7 months. The stock is currently priced at $78.32, and has a continuous dividend yield of 1.4 percent. If the risk-free rate of interest is 4.9 percent, what is the futures price?
A) $80.87
B) $80.54
C) $79.91
D) $80.06
E) $76.71
Correct Answer:
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