Answer:
$273
Explanation:
the futures price = current stock price x (1 + T-bill rate)ⁿ
- current stock price = $260
- T-bill rate = 5%
- n = is not given, but since the T-bill rate is for one year, I will suppose the futures contract is also for one year
the futures price = $260 x (1 + 5%)¹ = $260 x 1.05 = $273
A futures contract is a contract by which a buyer or seller is obligated to either purchase or sell (respectively) a stock or other security at a specific price in a specific date in the future.
