A stock has a current share price of $49.24 and a dividend yield of 1.5 percent. If

Question:

A stock has a current share price of $49.24 and a dividend yield of 1.5 percent. If the risk-free rate is 5.4 percent, what is the futures price if the maturity is four months?

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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...