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1. Consider a single stock futures contract on the stock of Brandex, a company that currently pays no dividends. Each contract calls for delivery of
1.
Consider a single stock futures contract on the stock of Brandex, a company that currently pays no dividends. |
Each contract calls for delivery of 1,000 shares of stock in one year. The one-year T-bill rate is 4.00%. |
If Brandex stock now sells for $115.00, |
What should be the Brandex 1-year stock futures price? |
Enter your answer in the following format: 123.45 |
Hint: Answer is between 107.64 and 130.36 ____________? |
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