A stock index currently stands at 500. The risk-free interest rate is 5% per annum (with continuous compounding) and the dividend yield on the index is 3.5% per annum. What should the futures price for a three-month contract be?
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Home » Business » A stock index currently stands at 500. The risk-free interest rate is 5% per annum (with continuous compounding) and the dividend yield on the index is 3.5% per annum. What should the futures price for a three-month contract be?