In March 2012, 12 month futures on the Australian S&P/ASX 200 Index traded at 4,244. Spot was

Question:

In March 2012, 12 month futures on the Australian S&P/ASX 200 Index traded at 4,244. Spot was 4,276. The interest rate was 3.90%, and the yield was about 5%. 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...