Suppose the value of the S&P 500 stock index is currently $3,700. Required: a. If the...
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Suppose the value of the S&P 500 stock index is currently $3,700. Required: a. If the 1-year T-bill rate is 5% and the expected dividend yield on the S&P 500 is 4%, what should the 1-year maturity futures price be? b. What if the T-bill rate is less than the dividend yield, for example, 1%? Complete this question by entering your answers in the tabs below. Required A Required B If the 1-year T-bill rate is 5% and the expected dividend yield on the S&P 500 is 4%, what should the 1-year maturity futures price be? Futures price < Required A Required B > Suppose the value of the S&P 500 stock index is currently $3,700. Required: a. If the 1-year T-bill rate is 5% and the expected dividend yield on the S&P 500 is 4%, what should the 1-year maturity futures price be? b. What if the T-bill rate is less than the dividend yield, for example, 1%? Complete this question by entering your answers in the tabs below. Required A Required B If the 1-year T-bill rate is 5% and the expected dividend yield on the S&P 500 is 4%, what should the 1-year maturity futures price be? Futures price < Required A Required B >
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