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The S&P 500 index has a dividend yield of 4.5 percent. Suppose you enter into a 8.0 month forward contract to buy S&P 500 index.

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The S&P 500 index has a dividend yield of 4.5 percent. Suppose you enter into a 8.0 month forward contract to buy S&P 500 index. The current value of the index equals $1081.0 and the risk-free interest rate is 7.0 percent continuously compounded. What is the forward price? 1099.2 1063.1 11671 10012 0 1132.6

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