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In December 2014, 6-month futures on the Australian S&P/ASX 200 Index traded at 5,428. Spot was 5,458. The annual interest rate was 2.69% and the

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In December 2014, 6-month futures on the Australian S&P/ASX 200 Index traded at 5,428. Spot was 5,458. The annual interest rate was 2.69% and the annual dividend yield was about 4.3%. a. Based on the current spot price, what should be the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Calculated futures price $ b. Are the futures underpriced or overpriced? Overpriced Underpriced

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