What is the futures price for a connoted deliverable

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You are to take as given that the risk-free interest rate is 10.5% per annum with continuous compounding. Also, the dividend yield on s stock index varies throughout the year. In February, May, September and october, dividends are paid at a rate of 4% per annum. In other months, dividends are paid at a rate of 3% per annum. Suppose that the value of the index on August 31 2, 275. What is the futures price for a connoted deliverable on December 31 of the same year?

Reference no: EM131444357

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