Question
The S&P 500 Index is priced at $1984. The continuously compounded annualized dividend yield on the index is 2.30%. The continuously compounded annual interest rate
The S&P 500 Index is priced at $1984. The continuously compounded annualized dividend yield on the index is 2.30%. The continuously compounded annual interest rate is 1.20%. What is the price of a forward contract that expires 9 months from today?
| A. | $1973.12 | |
| B. | $2000.44 | |
| C. | $1967.70 | |
| D. | $1994.94 |
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
