Determination of Forward & Futures Prices: isk-free rate of interest is 8% per annum with continuous compounding, and the end yield on a stock index is 4.7% per annum. The current value of the index is 5,463. What is the three-month futures price? 7. You are to take as given that the risk-free interest rate is 10.5% per annum with continuous compounding. Also, the dividend yield on a stock index varies throughout the year. In February, May, September and October, dividends are paid at a rate of 4% per annum. In other months, dividends are paid at a rate of 3% per annum. Suppose that the value of the index on August 31 is 2,275. What is the futures price for a contract deliverable on December 31 of the same year