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The annualized continuous dividend yield on the S&P 500 Index is 5.50%. The continuously compounded annual interest rate is 2%. If the 5-month forward price
The annualized continuous dividend yield on the S&P 500 Index is 5.50%. The continuously compounded annual interest rate is 2%. If the 5-month forward price is $855 and the index is priced at $880, what is the profit/loss from a cash-and-carry strategy? $12.26 gain $12.26 loss $5.27 loss $5.27 gain
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