Given a stock index with a value of $1,200, an anticipated dividend of $45, and a risk-free rate of 6%, what should be the value of one futures contract on the index?
A. $1,227.00
B. $1,070.00
C. $993.40
D. $995.09
E. $1,000.00
A. $1,227.00
F = 1,200 × (1.06) ? 45; F = 1,227.00.
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