The S&P 500 Index is priced at $950.46. The annualized dividend yield on the index is 1.40%. The continuously compounded annual interest rate is 8.40%. What is the price of a forward contract that expires 9 months from today?
(a) $937.48
(b) $942.66
(c) $984.36
(d) $1001.69
Answer: d
Fin 402
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