Miranda wants to purchase the SIF100 futures contract that expires in 60 days. The FMV of the underlying stocks is $35,000. The interest rate is 6% per annum and the stocks are expected to pay $200 in dividends over the next 60 days. Assume the dividends are paid evenly over the 60 days, paying on average 30 days later. 

What is the price of the stock index?    

Answer rating: 100% (QA)

To calculate the price of the stock index we need to consider the fair value of the futures contract ... View the full answer