Redo the previous question if the interest rates for borrowing and lending are not equal, i.e. there
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Redo the previous question if the interest rates for borrowing and lending are not equal, i.e. there is a bid-ask spread for the interest rates, which is 6 − 6.25%.
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You are given information that the spot price of an asset is trading at a bid-ask quote of 80 − 80.5, and the six-month interest rate is 6%. What is the bid-ask quote for the six-month forward on the asset if there are no dividends?
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