The S&P Index closed at $2,164.69. The estimated annual dividend yield for this year is 2.00%....
The S&P Index closed at $2,164.69. The estimated annual dividend yield for this year is 2.00%. The 1 Treasury Bill rate is 0.58%. What is the 1 year forward price for the S&P Index?
Homework Answers
Forward rate = spot rate*e^((T bill rate-div yield rate)*t)
=2164.69*e^(0.0058-0.02)*1) = 2134.17
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The S&P Index closed at $2,164.69. The estimated annual
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