If the maturity of the futures contract is four months what


Price on Futures Contract

(a) A stock has a current price of $38 per share. The risk-free rate is 3.2 percent per year. If a futures contract on the stock has a delivery (maturity) date in nine months (T =0.75), what should the futures price be today?

(b) A stock has a current share price of $42.60 and a futures price of $42.95. If the maturity of the futures contract is four months, what is the monthly risk-free rate?

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Financial Management: If the maturity of the futures contract is four months what
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