Question
The 4-month futures price on a non-dividend-paying stock is $25.00. The risk-free rate is 2.5 percent and the market rate is 9.0 percent. What is
The 4-month futures price on a non-dividend-paying stock is $25.00. The risk-free rate is 2.5 percent and the market rate is 9.0 percent. What is the spot rate for this stock if spot-futures parity exists?
| A. | $24.71 | |
| B. | $24.30 | |
| C. | $24.99 | |
| D. | $24.80 | |
| E. | $24.43 |
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Snap Judgment When To Trust Your Instincts When To Ignore Them And How To Avoid Making Big Mistakes With Your Money
Authors: David E. Adler
1st Edition
0137147783,0137037090
