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A stock is trading at $ 32.34. The interest rate is r = 0.01 (continuous compounding) Enter the prices of the 1 month and 12
A stock is trading at $ 32.34. The interest rate is r = 0.01 (continuous compounding) Enter the prices of the 1 month and 12 month futures on the stock. (Give answer with two decimal! For example, $32.34) You buy 1 month Futures with a value equivalent to 10,000 shares of the stock. One month later the stock is trading at 31.50. Compute the P&L on the futures position One day after entering the futures contract, the stock price goes up to 33.15. What is the Profit and Loss on the futures position
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