Question
You are analyzing the fair value of Stock Index Future SIF (FBM KLCI) for your clients with following data. The average annual dividend yield of
You are analyzing the fair value of Stock Index Future SIF (FBM KLCI) for your clients
with following data.
The average annual dividend yield of the FBM KLCI is 4%
The risk free interest rate is 10% annualized; ▪ The spot index, the FBM KLCI is now 980 points; ▪ index multiplier is RM 50.
You are required to compute the correct price of a SIF contract if its maturity period in 4 months, 6 months and 9 months.
Step by Step Solution
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Step: 1
The fair value of the SIF contract can be calculated using the d...
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
