You are analyzing the fair value of Stock Index Future SIF (FBM KLCI) for your clients

with following data. (15 marks)

The average annual dividend yield of the FBM KLCI is 4%

The risk free interest rate is 10% annualized; The spot index, the FBM KLCI is now 980 points; index multiplier is RM 50.

You are required to compute the correct price of a SIF contract if its maturity period in 4 months, 6 months and 9 months.