Respuesta :
The value of the futures contract on the index will be equal to $1137.
Stock Index may be defined as the scale that reflects the changes happening in the stock market. It is created by using or grouping up of similar stocks and criteria are set for various types of stocks. Stocks are entities that have a monetary value and that can be bought or sold by individuals or organizations in order to have an extra amount of investment. The formula for calculating the Future value is expressed as
Future value = Stock Index Value × (1 + risk free rate) - dividends
According to question, Stock Index Value = $1125, Risk free rate = 4% = 0.04 and Dividend = $33. Now,
Future value = $1125 × (1 + 0.04) - $33
Future value = $1137
Learn more about Future value at:
brainly.com/question/17193242
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