Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If the future price is equal to the spot price of a stock The dividend yield and interest rate are the same Interest rate is

If the future price is equal to the spot price of a stock

  1. The dividend yield and interest rate are the same

  2. Interest rate is zero

  3. Volatility is zero

  4. The dividend yield and interest rate are zero

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investments Valuation and Management

Authors: Bradford D. Jordan, Thomas W. Miller

5th edition

978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292

More Books

Students also viewed these Finance questions