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which of the following statements is/are true with respect to the fair value of an index futures contract, if

all the other things remain constant? i an increase in the risk free rate increases the fair value of the futures contract.ii. a decrease in the risk free rate increases the fair value of the futures contract.<iii. a reduction in the dividend yield reduces the fair value of futures contract.


1 only i above

2 only ii above

3 only iii above

4 both I and iii above

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