A stock index currently stands at 500. The risk-free interest rate is 5% per annum and the dividend yield on the index is 3% per annum. The futures price for a three-month contract be (note: use 365 day per year market convention):
600
500
502.47
495.12
2. The reference entity in a credit default swap is:
The company or country whose default is being insured against
None of the stated choices are correct
The buyer of protection
The seller of protection