A stock index futures contract maturing in one year has a currently traded price of $1,000. The

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

a. $933.33

b. $970.87

c. $1,071

d. $1,029

Related Book For answer-question

Introduction to Finance Markets, Investments and Financial Management

ISBN: 978-1119398288

16th edition

Authors: Ronald W. Melicher, Edgar A. Norton

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Posted Date: Feb 04, 2022 07:17 AM

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A stock index futures contract maturing in one year has a currently traded price of $1,000. The

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Introduction to Finance Markets, Investments and Financial Management

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