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A stock index currently stands at $400. The risk-free interest rate is 6% per annum with continuous compounding and the dividend yield is 2.5% per
A stock index currently stands at $400. The risk-free interest rate is 6% per annum with continuous compounding and the dividend yield is 2.5% per annum. What should the futures price for a three-month contract be?
Question 10 options:
| A) $403.53 |
| B) $414.25 |
| C) $424.73 |
| D) $405.87 |
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