Why is two different formulas used to calculate one answer (the futures price on stock index)which one

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Why is two different formulas used to calculate one answer (the futures price on stock index)？which one is correct, and if both are correct, how should l choose between the two？

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Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Apr 11, 2023 01:15 AM

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Why is two different formulas used to calculate one answer (the futures price on stock index)which one

Question:

(r-)XT Ft= So e Ft = Sox (1+r-y) T Sometimes the two formata give the same consuer but Sometines not ? (r-)XT Ft= So e Ft = Sox (1+r-y) T Sometimes the two formata give the same consuer but Sometines not ?

Expert Answer:

The two formulas you provided are used to calculate the futures price on a stock index but they are ... View the full answer

Income Tax Fundamentals 2013

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