A stock index futures contract matures in one year. The cash index currently has a level of

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A stock index futures contract matures in one year. The cash index currently has a level of $1,000 with a dividend yield of 2 percent. If the interest rate is 5 percent, then spot-futures parity implies a futures price of:

a. $943.40.

b. $970.87.

c. $1,060.

d. $1,030.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Dec 31, 2023 11:02 AM

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A stock index futures contract matures in one year. The cash index currently has a level of

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Fundamentals Of Investments Valuation And Management

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