Question
A stock index has the current value 2932.72 and is generating a continuous income stream (from dividends) of 5.3 % p.a.. Given that the risk-free
A stock index has the current value 2932.72 and is generating a continuous income stream (from dividends) of 5.3 % p.a..
Given that the risk-free rate is a continuous 3.4% p.a. and a futures on the index has 7 months to maturity, what should be the price of the futures on the stock index?
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
