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Intro The current value of the S&P 500 stock index is 3,996 and its expected dividend yield is 1.3%. The risk-free rate is 3% for
Intro The current value of the S&P 500 stock index is 3,996 and its expected dividend yield is 1.3%. The risk-free rate is 3% for all maturities (both continuously compounded). Part 1 Attempt 1/10 for 10 pts. What should be the price of a futures that matures in 0.9 years? 0+ decima Submit Part 2 | Attempt 1/5 for 10 pts. If the actual futures price is $4,139, what could you do to benefit from this situation? Check all that apply: Sell the futures contract Short the shares underlying the index Buy the shares underlying the index Buy the futures contract Submit Part 3 Attempt 1/10 for 10 pts. What will be your profit in 0.9 years if you trade 12 futures contracts (in $)? For simplicity, assume the futures contract has a multiplier of 1. 0+ decima Submit
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