A stock index currently stands at 8,200. The risk-free rate is 4% per annum and the dividend

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A stock index currently stands at 8,200. The risk-free rate is 4% per annum and the dividend yield on the index is 2.5% per annum (both with continuous compounding). What should be the futures price for a six-month contract?

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Options Futures And Other Derivatives

ISBN: 9780132164948

8th Edition

Authors: John C. Hull

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Posted Date: Apr 23, 2024 06:46 AM

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A stock index currently stands at 8,200. The risk-free rate is 4% per annum and the dividend

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Expert Answer:

To calculate the futures price for a sixmonth contract we can use the costofcarry model whic... View the full answer

Options Futures And Other Derivatives

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