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Equity Index Forward Given: So = Current Index = $12,000 Dividend Yield = 3% Rf = 6% Maturity = 90 days (a) No arbitrage price?
Equity Index Forward
Given:
So = Current Index = $12,000
Dividend Yield = 3%
Rf = 6%
Maturity = 90 days
(a) No arbitrage price?
(b) Value to the long in 30 days if index = 13,500
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