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Consider the current price of a bond is $100 and you are going for a 9-month forward contract on it. This bond is entitled to

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Consider the current price of a bond is $100 and you are going for a 9-month forward contract on it. This bond is entitled to receive a coupon of $9 in 6 months and the risk free interest rate is 8% per annum continuously compounded for all maturities. What is the fair forward price of this bond? A. $99.00 B. $97.00 C. $101.00 D. $100.00 Assuming that you are going for a 1 year forward contract on 100 Gold bullions that is currently priced at $2,500 each bullion. The storage cost will be $50 each bullion for 1 year and to be paid in advance half yearly. The risk free interest rate is 7% p.a. for all maturities and it is continuously compounded. If the 1-year forward price for this Gold bullion is as $2800 each, what will be the arbitrage profit for each bullion? A. $300.00 B. $0.00 C. $66.03 D. $250.00 Consider the current price of a bond is $100 and you are going for a 9-month forward contract on it. This bond is entitled to receive a coupon of $9 in 6 months and the risk free interest rate is 8% per annum continuously compounded for all maturities. What is the fair forward price of this bond? A. $99.00 B. $97.00 C. $101.00 D. $100.00 Assuming that you are going for a 1 year forward contract on 100 Gold bullions that is currently priced at $2,500 each bullion. The storage cost will be $50 each bullion for 1 year and to be paid in advance half yearly. The risk free interest rate is 7% p.a. for all maturities and it is continuously compounded. If the 1-year forward price for this Gold bullion is as $2800 each, what will be the arbitrage profit for each bullion? A. $300.00 B. $0.00 C. $66.03 D. $250.00

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