A single stock futures contract on a non-dividend paying stock with current price $110 has a maturity of one year.
a. If the T-bill rate is 4.0%, what should the futures price be? (Round your answer to 2 decimal places.)
b. What should the futures price be if the T-bill rate is still 4.0% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. What if the interest rate is 5.1% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Futures price=Stock price*(1+interest rate)^t
1.
=110*(1+4%)=114.4
2.
=110*(1+4%)^3=123.73504
3.
=110*(1+5.1%)^3=127.70292161
A single stock futures contract on a non-dividend paying stock with current price $110 has a...
a. A single-stock futures contract on a non-dividend-paying stock with current price $150 has a maturity of 1 year. If the T-bill rate is 2%, what should the futures price be? (Round your answer to 2 decimal places.) Futures price b. What should the futures price be if the maturity of the contract is 3 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price c. What should the futures price be if the interest...
a. A single-stock futures contract on a non-dividend-paying stock with current price $240 has a maturity of 1 year. If the T-bill rate is 4%, what should the futures price be? (Round your answer to 2 decimal places.) Futures price b. What should the futures price be if the maturity of the contract is 3 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price c. What should the futures price be if the interest...
A single stock futures contract on a nondividend-paying stock with current price $175 has a maturity of one year. a. If the T-bill rate is 5.8%, what should the futures price be? (Round your answer to 2 decimal places.) Futures price b. What should the futures price be if the T-bill rate is still 5.8% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price c. What...
Check my work 19 A single stock futures contract on a nondividend-paying stock with current price $150 has a maturity of one year. a. If the T-bill rate is 3.6%, what should the futures price be? (Round your answer to 2 decimal places.) 1.15 points Futures price 8 03:49:43 Skipped eBook b. What should the futures price be if the T-bill rate is still 3.6% and the maturity of the contract is three years? (Do not round intermediate calculations. Round...
A single stock futures contract on a non dividend-paying stock with current price $120 has a maturity of three years. If the T-bill rate is 2.5%, what should the future price be? Round your answer to two decimal places.
A non-dividend-paying stock is currently priced at $33.15. The risk-free rate is 4.4 percent and a futures contract on the stock matures in three months. What price should the futures be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price
A non-dividend-paying stock is currently priced at $33.15. The risk-free rate is 4.4 percent and a futures contract on the stock matures in three months. What price should the futures be? (Do not round intermediate...
OneChicago has just introduced a single-stock futures contract on Brandex stock, a company that currently pays no dividends. Each contract calls for delivery of 2,400 shares of stock in 1 year. The T-bill rate is 4% per year. a. If Brandex stock now sells at $110 per share, what should the futures price be? (Round your answer to 2 decimal places.) b. If the Brandex price drops by 1%, what will be the new futures price and the change in...
OneChicago has just introduced a single stock futures contract on Brandex stock, a company that currenty pays no dividends. Eacth contract calls for delivery of 1,400 shares of stock in 1 year. The T-bill rate is 5% per year a. If Brandex stock now sells at $150 per share, what should the futures price be? (Round your answer to 2 decimal places.) Futures price b. If the Brandex price drops by 3%, what will be the new futures price and...
Suppose the value of the S&P 500 Stock Index is currently $3,250. a. If the one-year T-bill rate is 5.5% and the expected dividend yield on the S&P 500 is 5.0%, what should the one-year maturity futures price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What would the one-year maturity futures price be, if the T-bill rate is less than the dividend yield, for example, 4.0%? (Do not round intermediate calculations. Round your...
Problem 22-13 OneChicago has just introduced a single-stock futures contract on Brandex stock, a company that currently pays no dividends. Each contract calls for delivery of 900 shares of stock in 1 year. The T-bill rate is 9% per year. a. If Brandex stock now sells at $210 per share, what should the futures price be? (Round your answer to 2 decimal places.) Futures price $ 220.78 b. the Brandex price drops by what will be the new futures price...