The cac-40 index a widely followed index of french stock, Ask an Expert

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The CAC-40 Index (a widely followed index of French stock prices) is currently at 4,599, the expected dividend yield on the index is 1.7 percent per year, and the risk-free rate in France is 4.2 percent annually. If CAC-40 futures contracts that expire in five months are currently trading at 4,632. What program trading strategy would you recommend?

The futures are underpriced OR overpriced , and you would want to sell the index OR buy the index and buy the futures OR sell the futures.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92426836

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