Given a stock index with a value of $1,125, an anticipated dividend of $33, and a risk-free rate of 4%, what should be the value of one futures contract on the index?
A. $1137.00
B. $1070.00
C. $993.40
D. $995.09
E. $1000.00
A. $1137.00
F = 1,125 × (1.04) ? 33; F = 1,137.00.
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