5. Let r = 0.08, S = $100, = 0, and = 0.30. Using the...

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5. Let r = 0.08, S = $100, δ = 0, and σ = 0.30. Using the risk-neutral distribution, simulate 1/S1. What is E(1/S1)? What is the forward price for a contract paying 1/S1?

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Derivatives Markets Pearson New International Edition

ISBN: 978-1292021256

3rd Edition

Authors: Robert L. Mcdonald

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5. Let r = 0.08, S = $100, = 0, and = 0.30. Using the...

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Derivatives Markets Pearson New International Edition

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