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Consider a 3 month futures contract on S&P 500. Stocks underlying the index have dividend yield of 1% per annum. Current value of the index
Consider a 3 month futures contract on S&P 500. Stocks underlying the index have dividend yield of 1% per annum. Current value of the index is $1,300 and interest rate is 5% per year compounded continuously. What is the appropriate value of the futures price?
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