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The Current Value Of S&P 500 Is 4,000. Future Value Of S&P 500 Including Dividends Will Either Be 4,800 or 3,600. The S&P Index Will
- The Current Value Of S&P 500 Is 4,000.
- Future Value Of S&P 500 Including Dividends Will Either Be 4,800 or 3,600.
- The S&P Index Will Pay $40 Of Dividends.
- The Interest Rate is 5%.
- Borrowing Present Value Of $3,500.
- Invest $4,000 In An Index Fund
- Shorts 0.5 S&P Futures Contracts That Settle At 1 Times the Index Value.
This position is equivalent to
Group of answer choices
Investing 4,000 in an index fund and borrowing 3,000
Investing 2,000 in an index fund
A zero investment in an index fund and 2,000 invested in a money market fund
None of these choices
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