11. Spot-Futures Parity (LO3, CFA1) A stock index futures contract maturing in one year has a currently

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11. Spot-Futures Parity (LO3, CFA1) A stock index futures contract maturing in one year has a currently traded price of $1,000. The cash index has a dividend yield of 2 percent and the interest rate is 5 percent. Spot-futures parity then implies a cash index level of:

a. $933.33

b. $970.87

c. $1,071

d. $1,029

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