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A stock index currently stands at 7500. The risk-free rate is 3% per annum and the dividend yield on the index is 1.5% per annum
A stock index currently stands at 7500. The risk-free rate is 3% per annum and the dividend yield on the index is 1.5% per annum (both with continuous compounding). What should the futures price for a nine-month contract be?
| A. | 7670.66 | |
| B. | 7416.1 | |
| C. | 7613.35 | |
| D. | 7584.85 |
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