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A stock index currently stands at 500. The risk-free interest rate is 5% per annum and the dividend yield on the index is 3% per
A stock index currently stands at 500. The risk-free interest rate is 5% per annum and the dividend yield on the index is 3% per annum. The futures price for a three-month contract be (note: use 365 day per year market convention):
a. 600 b. 500 c. 502.47 d. 495.12
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