Risk-free rate-maturity of the futures contract

Assignment Help Financial Management
Reference no: EM131616331

A non-dividend-paying stock has a current share price of $39.67 and a futures price of $40.01. If the maturity of the futures contract is six months, what is the risk-free rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Risk-free rate %

Reference no: EM131616331

Questions Cloud

What is the approximate market value of the bond : A 5-year zero-coupon bond that yields 7% is issued with a $1000 par value. What is the approximate market value of the bond?
Assume you deposit the money at the end of each year : how much should you deposit annually if you can earn 7% annual return? Assume you deposit the money at the end of each year.
What is current stock price-stock price be in three years : What is the current stock price? What will the stock price be in three years? What will the stock price be in 12 years?
Payables and accruals play in working capital or cash cycle : What role do payables and accruals play in the working capital or cash cycle? What kinds of short term financing are considered the most expensive?
Risk-free rate-maturity of the futures contract : If the maturity of the futures contract is six months, what is the risk-free rate?
Non-dividend-paying stock-what price should the futures be? : A non-dividend-paying stock is currently priced at $38.29. What price should the futures be?
Smallest expected loss in the coming month with probability : What is the smallest expected loss in the coming month with a probability of 16.0 percent?
Discuss the key metrics for evaluating stocks : Discuss the key metrics for evaluating stocks, and explain the risks associated with investing in individual stocks.
What is annual standard deviation of the stock : Assume the monthly standard deviation of a stock is 5.40 percent. What is the annual standard deviation of the stock?

Reviews

Write a Review

Financial Management Questions & Answers

  Deltas of a call option and a put option

What are the deltas of a call option and a put option with the following characteristics?

  Compute the aftertax cost of the borrow-purchase alternative

Preston Corporation is considering whether to borrow funds and purchase an asset or to lease the asset under an operating lease arrangement. If the company purchases the asset, the cost will be $110,000. It can borrow funds for four years at 12 perce..

  Complete the following table to quantitatively analyze

Open an additional window, at an additional cost of $18 per hour. The second window will have the same service rate as the first. Each window will have a separate line and the customers will join the shortest line.

  What is annual cost of operating the lockbox system

A company receives an average of 325,000 dollars in payments a day. On average it takes 4 days for the company to receive the checks via the mail. The company wants to establish a lockbox system. Where customers checks would be sent to a local bank i..

  In the various elements that help create valid contracts

In the various elements that help create valid contracts.

  What is the value of the short forward contract

A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for three-month forward contract is $42. The three month risk-free interest rate (with continuous compou..

  What is the implied value of warrants attached to each bond

What is the implied value of the warrants attached to each bond?

  True regarding payment and the place for delivery

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

  Sometimes called the benefit ratio is calculated

The profitability index, sometimes called the benefit ratio is calculated by;

  What will the proceeds be for a loan

Find the proceeds from a loan of $2,300 for 2 years at a discount rate of 4.9%.- What will the proceeds be for a loan of $900 discounted by $75?

  What is the cost of capital used to evaluate this expansion

What is the cost of capital used to evaluate this expansion if it funds it at the market value D/E ratio?

  What is the profitability index for the project

A project requires an investment of $800 and has a net present value of $500. If the IRR is 12%, what is the profitability index for the project?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd