Theoretical fair value futures price

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Suppose that the six month risk-free interest rate is 8% per annum with continuous compounding and that the dividend yield on a stock index is 2% per annum. The index is standing at 1,000, and the futures price for a contract deliverable in six months is $1040. What is the theoretical "fair value" futures price? Please enter your answer as a number with two decimal places (no dollar sign).

Reference no: EM133121623

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