The current stock price is $85, and the stock's dividend yield is 2.5% each year....
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The current stock price is $85, and the stock's dividend yield is 2.5% each year. The stock expected return is 12% and the risk free rate is 4% annually. What is the futures price for a four year to maturity futures contract if there is no arbitrage opportunity? Assume that it costs nothing to hold the stock (no cost of carry).
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