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These questions address stock futures contracts: a. A hypothetical futures contract on a non-dividend-paying stock with current price exist150 has a maturity of one year.
These questions address stock futures contracts: a. A hypothetical futures contract on a non-dividend-paying stock with current price exist150 has a maturity of one year. If the T-bill rate is 6%, what is the futures price? (Round your answer to the nearest whole number. Omit the "exist" sign from your response.) Futures price exist b. What should be the futures price if the maturity of the contract is three years? (Round your answer to 2 decimal places. Omit the "exist" sign from your response.) Futures price with a maturity of 3 years exist c. What if the interest rate is 8% and the maturity of the contract is three years? (Round your answer to 2 decimal places. Omit the "exist" sign from your response.) Futures price with an interest rate of 8% exist
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