In December 2014, 6-month futures on the Australian S&P/ASX 200 Index traded at 5,376. Spot was 5,442.

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In December 2014, 6-month futures on the Australian S&P/ASX 200 Index traded at 5,376. Spot was 5,442. The interest rate was 2.5%, and the dividend yield was about 4.7%. Were the futures fairly priced?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Principles of Corporate Finance

ISBN: 978-1259144387

12th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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