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What should the futures price for a five-month contract be

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Question - A stock index currently stands at 338. The risk-free interest rate is 7.4% per annum (with continuous compounding) and the dividend yield on the index is 4% per annum. What should the futures price for a 5-month contract be?

a. $248.75

b. $417.75

c. None of the other answers provided is the best answer

d. $342.82

e. $333.25

Reference no: EM133013180

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