The futures price for three-month contract be

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A stock index currently stands at 500. The risk-free interest rate is 5% per annum and the dividend yield on the index is 3% per annum. The futures price for a three-month contract be (note: use 365 day per year market convention):

600

500

502.47

495.12

2. The reference entity in a credit default swap is:

The company or country whose default is being insured against

None of the stated choices are correct

The buyer of protection

The seller of protection

Reference no: EM132036964

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