The current value of the sampp 500 index is 1300 the, Ask an Expert

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The current value of the S&P 500 index is 1,300. The riskless rate of interest is 6 percent per year compounded annually. As a rough approximation, you expect the stocks in the index to pay dividends, which when reinvested with interest, will equal $10 six months from now. Compute the equilibrium futures price for the S&P futures contract maturing in exactly six months.

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Financial Management, Finance

Category:- Financial Management
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