a. A single-stock futures contract on a non-dividend-paying stock with current price $300 has a maturity of 1 year. If t
Posted: Sun Apr 17, 2022 6:26 pm
a. A single-stock futures contract on a non-dividend-paying stock with current price $300 has a maturity of 1 year. If the T-bill rate is 4%, what should the futures price be? (Round your answer to 2 decimal places.) Futures price b. What should the futures price be if the maturity of the contract is 7 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price c. What should the futures price be if the interest rate is 6% and the maturity of the contract is 7 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price