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A single stock futures contract on a non dividend-paying stock with current price $120 has a...

A single stock futures contract on a non dividend-paying stock with current price $120 has a maturity of three years. If the T-bill rate is 2.5%, what should the future price be? Round your answer to two decimal places.

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Answer #1

Future Price= Stock Price * (1 + Risk Free rate)

Future Price=120*(1+2.5%)

Future Price=123.00

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