If the 1-year t-bill rate is 6 and the expected dividend


Suppose the value of the S&P 500 stock index is currently 1,400.

If the 1-year T-bill rate is 6% and the expected dividend yield on the S&P 500 is 4%, what should the 1-year maturity futures price be?

Solution Preview :

Prepared by a verified Expert
Finance Basics: If the 1-year t-bill rate is 6 and the expected dividend
Reference No:- TGS02819727

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)