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Question
The 6-month futures price on a non-dividend-paying stock is $36.20. The risk-free rate is 2.75 percent and the market rate is 9.60 percent. What is the spot rate for this stock if spot-futures parity exists?A. $35.43
B. $35.71
C. $36.30
D. $36.70
E. $36.99
Answer
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