Question: A stock index has a current value of 500. The average dividend yield of the index is 6%. The risk-free rate is 10%. The forward

A stock index has a current value of 500. The average dividend yield of the index is 6%. The risk-free rate is 10%. The forward price for a contract deliverable in one year is 540. Is the forward contract overpriced or underpriced now? O A. Overpriced B. Underpriced OC. Equal A

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