What is the value of one-year futures contract on the index

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Suppose that the current level of the Standard & Poor's Index is 1100. The prospective dividend yield on S&P500 stocks is 3%, and the risk-free interest rate is 2%. What is the value of a one-year futures contract on the index? (Assume all dividend payments occur at the end of the year.)

Reference no: EM131186329

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