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Question 18 5 points Save Answer An S&P 500 6-month futures contract sells for $105. The 6-month interest rate is 5%, and the present value
Question 18 5 points Save Answer An S&P 500 6-month futures contract sells for $105. The 6-month interest rate is 5%, and the present value of dividends from the stocks in the S&P 500 over the next 6 months is $8. If there are no transaction costs and the law of one price holds, what is the current value of the underlying share of the S&P 500 O A. $92 OB. $100 O C. $105 D. $108 E. None of the above
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