Fight Finance

Courses  Tags  Random  All  Recent  Scores

Question 652  future, continuously compounding rate

An equity index is currently at 5,200 points. The 6 month futures price is 5,300 points and the total required return is 6% pa with continuous compounding. Each index point is worth $25.

What is the implied dividend yield as a continuously compounded rate per annum?

Copyright © 2014 Keith Woodward