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The following data pertain to an S&P 500 mini futures contract as of the end of trading on Friday, May 7, 2021 Spot value=4,132,60 Risk
The following data pertain to an S&P 500 mini futures contract as of the end of trading on Friday, May 7, 2021
Spot value=4,132,60
Risk free rate= 0.05% (annual)
Maturity: June 18, 2021
Dividend yield of the underlying index=1.38%
A. Find the futures value of the above contract as of today (5/10/21).
B. Suppose you sell a mini futures contract on 5/10/22 and the futures value rises by 10 points by the end of the day. Will you gain or lose? How much?
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