Given a stock index with current value of $1.500, an anticipated dividend with present value of $62

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Given a stock index with current value of $1.500, an anticipated dividend with present value of $62 paid out over the next year and a risk-free rate of 5.75%, what should be the price of one 1-year futures contract on the index?

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Statistics For Business And Economics

ISBN: 9780132745659

8th Edition

Authors: Paul Newbold, William Carlson, Betty Thorne

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Posted Date: May 06, 2023 09:50 AM

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Given a stock index with current value of $1.500, an anticipated dividend with present value of $62

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To calculate the price of a oneyear futures contract on the stock index we need to use the costofcar... View the full answer

Statistics For Business And Economics

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