Question
Delta (DAL) is trading for (about) 24 USD a share. In the problems that follow, consider a two-year forward contract. Ken Griffin (Citadel) goes long
Delta (DAL) is trading for (about) 24 USD a share. In the problems that follow, consider a two-year forward contract. Ken Griffin (Citadel) goes long and John Overdeck (Two Sigma) goes short.
Suppose that Delta's price falls from 24 USD to 20 USD in one year. What would someone be willing to pay for the forward that Griffin and Overdeck wrote? Suppose that the risk-free rate is 1% Hint: your answer will be negative.
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The Commercial Aircraft Finance Handbook
Authors: Ronald Scheinberg
1st Edition
1781372608, 978-1781372609
