A single stock futures contract on a nondividend-paying


A single stock futures contract on a nondividend-paying stock with current price $170 has a maturity of one year.

a. If the T-bill rate is 4.8%, what should the futures price be? (Round your answer to 2 decimal places.)

Futures price            $

b. What should the futures price be if the T-bill rate is still 4.8% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Futures price            $

c. What if the interest rate is 6.3% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Futures price            $

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Financial Management: A single stock futures contract on a nondividend-paying
Reference No:- TGS02136290

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