12. Spot-Futures Parity (LO3, CFA1) A stock index futures contract matures in one year. The cash index
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12. Spot-Futures Parity (LO3, CFA1) A stock index futures contract matures in one year. The cash index currently has a level of $1,000 with a dividend yield of 2 percent. If the interest rate is 5 percent, then spot-futures parity implies a futures price of:
a. $943.40
b. $970.87
c. $1,060
d. $1,030
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Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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