Homework Answers
Current Price =$33.15
Time = 3 months
Rate = 4.4%
Futures Price = 33.15(1+4.4%*3/12)
= $33.51465
i.e. $33.51
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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 rou...
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