A stock is currently selling for $28 a share and has a dividend yield of 3.2 percent.The risk-free rate is 2.5 percent.What is the 6-month futures price on this stock?
A) $27.66
B) $27.90
C) $28.02
D) $28.10
E) $28.35

Name: A stock is currently selling for $28 a share and has a dividend yield of 3.2 percent.The risk-free rate is 2.5 percent.What is the 6-month futures price on this stock? A) $27.66 B) $27.90 C) $28.02 D) $28.10 E) $28.35
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Question

Quizplus · Accepted Answer

Futures rate = $28 (1 + 0.025 - 0.032)^{1 / 2} = $27.90

A Stock Is Currently Selling for $28 a Share and Has