Question
ABC wants to enter a swap contract. In particular, ABC needs to buy 194 units of Corn 1 months from now at a price K
ABC wants to enter a swap contract. In particular, ABC needs to buy 194 units of Corn 1 months from now at a price K per unit, and buy 210 units of Corn 9 months from now at the price of $2 per unit. The yearly CCIR is 6.05. The current spot price of Corn is $8.99.
What is the no-arbitrage value of K?
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Decoding The Metaverse Expand Your Business Using Web3
Authors: Chris Duffey
1st Edition
1398609048, 978-1398609044
