What should the futures price be if the t-bill rate is


A single stock futures contract on a nondividend-paying stock with current price $200 has a maturity of one year.

a. If the T-bill rate is 5.2%, what should the futures price be?

b. What should the futures price be if the T-bill rate is still 5.2% and the maturity of the contract is three years?

c. What if the interest rate is 6.9% and the maturity of the contract is three years?

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Financial Management: What should the futures price be if the t-bill rate is
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