Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 3.9%, and the future value of dividends expected to be paid over the next year is $19. The current index level is 1,449. Assume that you can short sell the S&P index. a. Suppose the expected rate of return on the market is 8.4%. What is the expected level of the index in one year?
b. What is the theoretical no-arbitrage price for a 1-year futures contract on the S&P 500 stock index?
c. Suppose the actual futures price is 1,452. Is there an arbitrage opportunity here?

Consider the following condensed financial statements of money freedom comma inc. the company's target rate of return is 30%: (click the icon to view the comparative balance sheet.) (click the icon to view the income statement.) requirements 1. calculate the company's roi. round all of your answers to four decimal places. 2. calculate the company's profit margin ratio. interpret your results. 3. calculate the company's asset turnover ratio. interpret your results. 4. use the expanded roi formula to confirm your results from requirement 1. interpret your results. 5. calculate the company's ri. interpret your results. requirement 1. calculate the company's roi. round all of your answers to four decimal places. begin by selecting the formula to calculate return on investment (roi), and then enter the amounts to calculate the company's roi. (round your calculations to four decimal places and enter your answer as a percent, x.xx%)