Single stock futures contract on a non dividend-paying stock

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A single stock futures contract on a non dividend-paying stock with current price $160 has a maturity of one year.

a. If the T-bill rate is 5.6%, what should the futures price be? (Round your answer to 2 decimal places.)

Futures price $

b. What should the futures price be if the T-bill rate is still 5.6% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Futures price $

c. What if the interest rate is 6.1% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Futures price $

Reference no: EM131552364

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