The current level of the sampp500 is 265150 assume that the, Ask an Expert

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The current level of the S&P500 is 2,651.50. Assume that the dividend yield on the S&P 500 is 2%. The risk-free interest rate based on the T-bill yield is assumed to be 2.20%.

(1) Based on this assumption, what should a futures contract with a one-year maturity be selling for?

(2) Does the futures price show contango or backwardation? Explain.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92771226

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