Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. basic math
  3. the s&p500 index is currently valued at 2755.

The S&P500 index is currently valued at 2755. What should be the price (FO) on...

50.1K

Verified Solution

Question

Basic Math

image

The S&P500 index is currently valued at 2755. What should be the price (FO) on the futures contract expiring 14 MONTHS from now if the S&P500 has a dividend yield of 1.50%, the rf is 2.25%, and the S&P500 has an expected return of 15.00%? Assume the risk-free rate and yields are annualized, and there are 12 MONTHS per year.2,741.192,763.832,779.122,729.102,751.05

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

The Transportation Security Administration (TSA) collects data on wait time at each of its airport security...

Medical Sciences
1.2K views

One of the outcomes of the case of Thalidomide in the U.S. was that pregnant women...

Electrical Engineering
1.2K views

QUESTION 1 A) There are two input parameters which need to be manipulated when controlling a syn- chronous...

General Management
1.2K views

An automobile company has decided to launch a CSR program in which they will be initiating...

Accounting
1.2K views

Consider the following cost items: 1. Salaries of players on the Boston Red Sox. 2. Year-end completed...

Physics
1.2K views

4 Which of the following is correctly matched Orbital a 4 f b 4 s...

Accounting
1.2K views

how would I solve this in excel? i Manipulating...

Accounting
1.2K views

8. If you could develop personality traits comprised of four virtues, what virtues would...

Accounting
1.2K views

Arundel Corporation tiene 7,000 acciones del 6% de acciones preferentes acumuladas de $100 a la...

Accounting
1.2K views

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7,...

Finance
1.2K views

Explain within 3 sentences whether the following statements are Ture or False. Marks will be...

Finance
1.2K views

Alysha has been offered two perpetuities: Grow and Shrink. Grow promises her $200 in one...