Problem

Suppose the value of the S&P 500 Stock Index is currently $800. If the one-year T-bi...

Suppose the value of the S&P 500 Stock Index is currently $800. If the one-year T-bill rate is 3% and the expected dividend yield on the S&P 500 is 2%, what should the one year maturity futures price be?

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Solutions For Problems in Chapter 17