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Question
The spot price for a non-dividend-paying stock is $24. The risk-free rate is 2.8 percent and the market rate is 10.6 percent. What is the 6-month futures price of this stock if spot-futures parity exists?A. $24.33
B. $24.41
C. $24.54
D. $24.59
E. $24.70
Answer
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Related questions
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Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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An analyst gathered the following year-end price level data for an economy. What is the economy's annual inflation rate for 2012?A. 3.22%B. 3.42%C. 3.68%D. 3.87%E. 3.92%
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