A one year gold futures contract is selling for $641. Spot gold prices are $600 and the one year risk free rate is 6%.
-A hypothetical futures contract on a non-dividend-paying stock with current spot price of $100 has a maturity of four years.If the T-bill rate is 7% what should the futures price be?
A) $76.29
B) $93.46
C) $107.00
D) $131.08
Correct Answer:
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