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6. Consider the futures contract on Azil Inc. stock. Suppose that the annual dividend yield for the stock is 2.5% and the risk-free rate is
6. Consider the futures contract on Azil Inc. stock. Suppose that the annual dividend yield for the stock is 2.5% and the risk-free rate is 6.3%. Both rates are based on continuous compounding. The current futures price of the Azil Inc. futures contract maturing in 18 months is $900 per share. Assume that the no arbitrage Futures-Spot parity when asset provides a known yield holds. What is the current spot price of Azil Inc. per share?
- $934.39
- $952.79
- $850.13
- $900.00
- $944.37
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