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(a) Discuss the objective of each key players in derivatives market. (12 marks) (b) Determine the correct price for Stock Index Futures (SIF) contract, with

(a) Discuss the objective of each key players in derivatives market. (12 marks)

(b) Determine the correct price for Stock Index Futures (SIF) contract, with the following information that expiring in

Spot price = RM2,550

Risk free rate = 3 % annually

Annual dividend yield = 1.52%

(i) 3 months (1.5 marks)

(ii) 6 months (1.5 marks)

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