You want to buy a six-month S&P 500 forward. S&P is at 4,000 right now. Risk free rate is 5%. S&P's annual dividend yiel

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answerhappygod
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You want to buy a six-month S&P 500 forward. S&P is at 4,000 right now. Risk free rate is 5%. S&P's annual dividend yiel

Post by answerhappygod »

You want to buy a six-month S&P 500 forward. S&P is at
4,000 right now. Risk free rate is 5%. S&P's annual dividend
yield is 2%. What is a fair forward price?
A. 4100
B. 4060
C. 4000
D. 4120
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