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.
Future Price= Stock Price * (1 + Risk Free rate)
Future Price=120*(1+2.5%)
Future Price=123.00
A single stock futures contract on a non dividend-paying stock with current price $120 has a...
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...
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