Question
A stock index currently stands at 350. The riskfree interest rate is 8% per annum (with continuous compounding). What should the futures price for a
A stock index currently stands at 350. The riskfree interest rate is 8% per annum (with continuous compounding). What should the futures price for a fourmonth contract be? What arbitrage profit can be made if the market price for the futures contract is $370. Clearly show your cashflows!!!
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AQA AS Accounting Unit 1 Introduction To Financial Accounting
Authors: Brendan Casey
1st Edition
1499789653, 978-1499789652
