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2 decimal numbers The current price of the underlying instrument is 1000 PLN. In a year (right before the expiry of the forward contract) this
2 decimal numbers
The current price of the underlying instrument is 1000 PLN. In a year (right before the expiry of the forward contract) this instrument will bring a dividend of PLN 70. In half a year the investor should bear the cost of storage of this instrument in the amount of PLN 50. If the current semi-annual interest rate is 4% (continuous interest rate) and the current annual interest rate is 5% (continuous interest rate), what should be the current forward price of this contract with time to maturity 1 year? 5- 1000 Wybierz jedn odpowied: a. 1069.75 PLN b. 1072.30 PLN 0.04.0.5 F=? p = 70 r = 4% m: 2 2 U= 50 e 5o = (1000 40.83) e Yox 83 c. 1030.25 PLN d. 1032.79 PLN 0.05. ^ The current market quotation of a share is 36 PLN. The share is expected to pay dividend at the continous rate 104 TE Step by Step Solution
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