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(5p) (a) A stock price currently stands at $450. The risk-free interest rate is 5% per annum (with continuous compounding) and the dividend yield on

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(5p) (a) A stock price currently stands at $450. The risk-free interest rate is 5% per annum (with continuous compounding) and the dividend yield on the stock is 3% per annum, What should the futures price for a 6-month contract be in this case? (b) How would you use this value in order to find out whether or not the market is efficient

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