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A stock index has a value of 1,200, an anticipated dividend of $40.50, and a risk-free rate of 4%. What should be the value of one futures contract on the index? (Round your ans…

A stock index has a value of 1,200, an anticipated dividend of $40.50, and a risk-free rate of 4%. What should be the value of one futures contract on the index? (Round your ans…
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A stock index has a value of 1,200, an anticipated dividend of $40.50, and a risk-free rate of 4%. What should be the value of one futures contract on the index? (Round your answer to 2 decimal places.)

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User Qschulz
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1 Answer

3 votes

Answer:

F = 1500*(1+.0575) - 62; F = 1524.25

Step-by-step explanation:

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User TigrouMeow
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