Question
A dividend paying stock has a current price of $100 and a dividend yield of 4%. The current risk-free rate is 1%. Based on this
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A dividend paying stock has a current price of $100 and a dividend yield of 4%. The current risk-free rate is 1%. Based on this information, what is the price of a futures contract on this stock that expires in 2 years? Your final answer should be exact.
$22
$28
$32
$36
None of the other answers are correct
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Production And Operations Analysis
Authors: Steven Nahmias
6th Edition
0073377856, 9780073377858
