Suppose the 180-day S&P 500 futures price is 1,404.98, while the cash price is 1,390.2.What is the implied dividend yield on the S&P 500 if the risk free interest rate is 3.5percent? (Round your answer to 2 decimal places. Omit the "%" sign in yourresponse.)Implied dividend%

calculation of implied dividend are as follows

Answered: Suppose the 180-day S&P 500 futures…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 10P

See similar textbooks

Similar questions

Suppose the 6-month Mini S&P 500 futures price is 1,168.44, while the cash price is 1,150.55. What is the implied dividend yield on the S&P 500 if the risk-free interest rate is 4.3 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Implied dividend yield %
Mansuk
Suppose the 6-month Mini S&P 500 futures price is 1,345.99, while the cash price is 1,335.81. What is the implied difference between the risk-free interest rate and the dividend yield on the S&P 500? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Implied difference %
Suppose the 6-month Mini S&P 500 futures price is 1,170.78, while the cash price is 1,158.57. What is the implied difference between the risk-free interest rate and the dividend yield on the S&P 500? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Implied difference %
Q.20 The risk manager of a large investment bank is reviewing the bank's investments in options contracts. He is particularly interested in call options contracts on shares of Hamilton Invest that the bank bought a few months ago. Hamilton Invest just unexpectedly announced that they would pay a USD 3 dividend per share in the sixth and twelfth months. The risk manager is concerned with the impact of dividends on the option's price. The risk- free rate is 5%, and the option has the following characteristics: A By how much will the price of the options change after the announcement of the dividends? Assume that N(d,) before and after the announcement of the dividend is 0.7654 and N(d₂) before and after the announcement of the dividend is 0.5489? B Strike price Expiration Underlying's Price Annual volatility The price of the option will increase by USD 3.32 USD 140 13 months USD 151 35% The price of the option will decrease by USD 3.32
Assume that the risk-free rate is 6.00% and the market risk premium is 6.75%. What is the expected return for the overall stock market (rM) ? (Answer as a percent with 2 decimal places. For example, 10 percent should be entered as 10.00. Do not use the % sign.)
Suppose a stock is currently (time t = 0) worth 100. Further, suppose the one year annually compounded interest rate is 2%, and the two year annually compounded rate is 3%. Find the following:a) The forward price for a forward contract on the stock with maturity year T1 = 1. b) The forward price for a forward contract on the stock with maturity year T2 = 2.c) The forward price for a forward contract with maturity T1 = 1 on a ZCB with maturity T2 = 2.d) The forward price for a forward contract with maturity T1 = 1 on a forward contract on the stock with maturity T2 = 2 and delivery price K = 101.
What is the CAPM required return for Stock Z, in decimal form? Round your answer to 4 decimal places (example: if your answer is .13579, you should enter .1358). Margin of error for correct responses: +/- .0005. expected return (implied by market price) Beta Stock Z 9.3% 1.22 MRP 6% ? T-bonds 5% ?
D3) Finance What is the probability that the put option is OTM at maturity if: the Stock is S = $195.00, no dividend is paid, the risk-free rate is r = 2.40%, the strike price is K = 209.00, the maturity is T = 23 months and the parameters are d1 = 0.2328 and d2 = -0.3175?
Assume that a $55 strike call has a 1.5% continuous dividend, r = 0.05 and the stock price is $50.00. If the option has 45 days until expiration, what is the vega, given a shift in volatility from 33.0% to 34.0%? (show details) A) 0.20 B) 0.15 C) 0.10 D) 0.05 Please show calculation work.
Suppose XYZ stock pays no dividends and has a current price of $50. The forward price for delivery in 1 year is $55. Suppose the 1-year eective annual interest rate is 10%. (a) Graph the payo and prot diagrams for a forward contract on XYZ stock with a forward price of $55. (b) Is there any advantage to investing in the stock or the forward contract? Why? (c) Suppose XYZ paid a dividend of $2 per year and everything else stayed the same. Now is there any advantage to investing in the stock or the forward contract? Why?
What is the price of a $25 strike call? Assume S = $23.50, \sigma 0.24, г 0.055, the stock pays a 2.5%continuous dividend and the option expires in 45 days?

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning