A hypothetical futures contract on a nondividend-paying stock with a current spot price of $100 has a maturity of one year. If the T-bill rate is 5%, what should the futures price be? $95.24 $100 $105 $107
Added by Jacqueline N.
Step 1
- Spot price (S₀) = $100 - Time to maturity (T) = 1 year - Risk-free rate (r) = 5% = 0.05 - No dividends Show more…
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