CFA Level I sample question

CFA Level I Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives question

Derivatives / Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives

No-login practice

Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives sample question

Choose an answer before revealing the explanation, key takeaway, and answer-choice review.

Question 1 of 1Score 0/1

Moderate

Derivatives

Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives

A stock trades at USD 75.00 and will pay a single dividend of USD 1.50 immediately before the expiration of a one-year forward contract on the stock. The annual risk-free rate is 4.0% with annual compounding. The no-arbitrage one-year forward price is closest to:

Report an issue

Question of the Week

Get one CFA Level I question by email

Receive a weekly practice question with answer-choice explanations and a short takeaway.