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**Question 70** A stock index has an initial value of 2,450 and a dividend yield of 2.1%. Assuming that the risk-free rate is 1.75%, what is the price of a six-month forward contract on this asset? | Financial Risk Manager Part 1 Quiz - LeetQuiz

Explanation:

F = 2{,}450 \times \left(1.0175 / 1.021\right)^{0.5} = 2{,}445.80

(Book 3, Module 36.1, LO 36.f)

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Question 70

A stock index has an initial value of 2,450 and a dividend yield of 2.1%. Assuming that the risk-free rate is 1.75%, what is the price of a six-month forward contract on this asset?

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Financial Risk Manager Part 1

Get started today

Comments (0)

Get started today

Question 70 A stock index has an initial value of 2,450 and a dividend yield of 2.1%. Assuming that the risk-free rate is 1.75%, what is the price of a six-month forward contract on this asset?

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Question 70

A stock index has an initial value of 2,450 and a dividend yield of 2.1%. Assuming that the risk-free rate is 1.75%, what is the price of a six-month forward contract on this asset?