By how much is the contract


The one-year futures price on a particular stock-index portfolio is 2,365, the stock index currently is 2,300, the one-year risk-free interest rate is 4.0%, and the year-end dividend that will be paid on a $2,300 investment in the index portfolio is $22.

By how much is the contract mispriced?

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Financial Management: By how much is the contract
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