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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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An analyst aims to calculate the cost of a 6-month futures contract for a stock index that currently stands at USD 750. The analyst has the following information: the risk-free interest rate is continuously compounded at an annual rate of 3.5%, and the dividend yield from the stocks in the index is also continuously compounded at an annual rate of 2.0%. Based on this data, what is the value of the 6-month futures contract?

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