The current level of the S&P 500 is 3,100. The dividend yield on the S&P 500...
The current level of the S&P 500 is 3,100. The dividend
yield on the S&P 500 is 2%. The risk-free interest rate is 1%.
What should be the price of a one-year maturity futures contract?
(Do not round intermediate
calculations.)
Homework Answers
Price of one year maturity futures contract
CONTINUOUS COMPOUNDING
=S*e^((r-q)*t)
=3100*e^((1%-2%)*1)
=3069.15448
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