The one-year futures price on a particular stock-index portfolio is 3, 055, the stock index...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The one-year futures price on a particular stock-index portfolio is 3, 055, the stock index currently is 3,000, the one-year risk free interest rate is 3.0%, and the year-end dividend that will be paid on a dollar 3,000 investment in the index portfolio is dollar 29. By how much is the contract mispriced?(input the amount as positive value.) the futures price is dollar its "Proper" or parity value
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
