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Consider a stock future contract on a non-dividend-paying stock. The current stock price is $210. Requirement 1: What should the future price be if the
Consider a stock future contract on a non-dividend-paying stock. The current stock price is $210.
Requirement 1: What should the future price be if the risk-free rate is 4%, and the maturity of the contract is 1 year?
Requirement 2: What should the future price be if the risk-free rate is 6%, and the maturity of the contract is 1 year?
Requirement 3: What should the future price be if the risk-free rate is 3%, and the maturity of the contract is 5 years? (Round to the nearest cent)
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