The spot rate on a non-dividend-paying stock is $16.70. The risk-free rate is 3.25 percent and the market rate is 11.75 percent. What is the two-month futures rate if spot-futures parity exists?
A) $16.48
B) $16.79
C) $17.01
D) $17.13
E) $17.24

Question

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The Answer of The spot rate on a non-dividend-paying stock is $16.70. The risk-free rate is 3.25 percent and the market rate is 11.75 percent. What is the two-month futures rate if spot-futures parity exists?
A) $16.48
B) $16.79
C) $17.01
D) $17.13
E) $17.24

The Spot Rate on a Non-Dividend-Paying Stock Is $16