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Stock M has an expected return of 12%: 10% is the expected capital return, the rest being the dividend yield. Stock M is currently priced

Stock M has an expected return of 12%: 10% is the expected capital return, the rest being the dividend yield. Stock M is currently priced at $46. If the risk-free interest rate (effective annual) is 3%, calculate the fair futures price on a five-month contract for stock M.

a. $46.57

b. $44.22

c. $59.92

d. $46.19

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