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Assume an asset is priced at $2000 and the risk free rate is 3.00%. Storage costs for the asset are $15 payable in advance and

Assume an asset is priced at $2000 and the risk free rate is 3.00%. Storage costs for the asset are $15 payable in advance and the asset pays a $40 dividend in 6 months what should a one year forward be priced at?

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203485 Calculation of forward price Forward price Spot price Storage cost1 r T D 1r T t Where Spot ... blur-text-image

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