These questions address stock futures contracts a A hypothetical futures contract on a non dividend paying stock with current price $ 150 has a maturity of one year If the T bill rate is 6 percent, what is the futures price b What should be the futures price if the maturity of the contract is three...

These questions address stock futures contracts: a. A hypothetical futures contract on a non- dividend- paying stock

Question:

These questions address stock futures contracts:
a. A hypothetical futures contract on a non- dividend- paying stock with current price $ 150 has a of one year. If the T- bill rate is 6 percent, what is the futures price?
b. What should be the futures price if the of the contract is three years?
c. What if the interest rate is 8 percent and the of the contract is three years?
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...