Single-stock futures contract on a nondividend-paying stock


Question:

A single-stock futures contract on a nondividend-paying stock with current price of $150 has a maturity of one year. If the T-bill rate is 6%, what should the futures price be? What should the futures price be if the maturity of the contract is 3 years? What if the interest rate is 8% and the maturity of the contract is 3 years?

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Finance Basics: Single-stock futures contract on a nondividend-paying stock
Reference No:- TGS02056533

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