Question: 2.(c) A future contract is available on R Ltd that pays an annual dividend of Rs. 4 and whose stock is currently priced at Rs.

2.(c) A future contract is available on R Ltd that pays an annual dividend of Rs. 4 and whose stock is currently priced at Rs. 125. Each future contract calls for delivery of 1000 shares to stock in one year, daily marking to market. The corporate treasury bill rate is 8%. As a result of the company stock price decrease, will an investor that has a long position in one futures contract of R Ltd realize a gain or loss

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