Question
a. A single-stock futures contract on a non-dividend-paying stock with current price $170 has a maturity of 1 year. If the T-bill rate is 3%,
a. A single-stock futures contract on a non-dividend-paying stock with current price $170 has a maturity of 1 year. If the T-bill rate is 3%, what should the futures price be? (Round your answer to 2 decimal places.)
b. What should the futures price be if the maturity of the contract is 2 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. What should the futures price be if the interest rate is 6% and the maturity of the contract is 2 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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