Cause the futures market price at maturity

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Reference no: EM131893288

1. KL Airlines is planning on paying $1.50, $1.75, and $1.80 a share over the next 3 years, respectively. After that, the dividend will be constant at $1.50 per share per year. What is the market price of this stock if the market rate of return is 10.5 percent?

2. Explain the key determinants of futures prices and explain the factors that may cause the futures market price at maturity, to be different from the spot market price at that same date.

Reference no: EM131893288

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