The sp 500 index has a dividend yield of 725 percent


Question: The S&P 500 index has a dividend yield of 7.25 percent. Suppose you enter into a 11.0 month forward contract to buy S&P 500 index. The current value of the index equals $1121.0 and the risk-free interest rate is 6.25 percent continuously compounded. What is the forward price?

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Finance Basics: The sp 500 index has a dividend yield of 725 percent
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