An intel single-stock futures contract expires

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Suppose that an Intel single-stock futures contract expires in four months. The stock pays a dividend in two months. We have the following information. Annualized, continuously compounded risk-free interest rate for 2-month period: r = 2.33%. Annualized, continuously compounded risk-free interest rate for 4-month period: r = 6.83%. Current spot price of Intel stock: $20 per share. Dividend per share of $0.32 in two months. What must the futures price equal in order than no arbitrage opportunity exist?

Reference no: EM131552732

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