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The level of the S&P 500 today is 110. The dividend yield on the S&P 500 is 2.00%. The risk-free interest rate is 6.00%. The
The level of the S&P 500 today is 110. The dividend yield on the S&P 500 is 2.00%. The risk-free interest rate is 6.00%. The quoted futures price for a contract on the S&P 500 due to expire 9 months from now should be _______ to ensure no arbitrage possibilities.
A. $1165.36
B. $1124.66
C. $1116.46
D. $1132.84
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
6th Edition
0201538997, 978-0201538991
