To calculate the 12-month futures price for Unico Delta stock, we use the formula for pricing equity futures, considering the current stock price, dividend yield, and the risk-free rate (LIBOR in this case):

????=????×????(????−????)????F=S×e(r−d)t

Where:

????Fis the futures price

????Sis the current stock price ($20)

????ris the risk-free rate (3% or 0.03)

????dis the dividend yield (5% or 0.05)

????tis the time to maturity (1 year)

Plugging in the values:

????=20×????(0.03−0.05)×1F=20×e(0.03−0.05)×1????=20×????−0.02F=20×e−0.02????≈20×0.9802F≈20×0.9802????≈20.04F≈20.04

Therefore, the 12-month futures contract will trade at approximately $20.04.

References

How Finance Works.pdf, p. 206 ​