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The current level of the Standard and Poor's index is 500, the prospective dividend yield is 2%, and the interest rate is 6%. What is
The current level of the Standard and Poor's index is 500, the prospective dividend yield is 2%, and the interest rate is 6%. What is the value of a one-year futures contract on the index? (Assume all dividend payments occur at the end of each year.)
A) 530 B) 520 C) 540 D) None of the above
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