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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
12.  Suppose the value of the S&P 500 stock index is currently $1,300. If the one-year T-bill rate is 5% and the expected dividend yield on the S&P 500 is 2%, what should the one- year maturity futures price be?
13.  It is now January. The current interest rate is 5%. The June futures price for gold is
$646.30, while the December futures price is $652. Is there an arbitrage opportunity here? If so, how would you exploit it?
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