Question
If you are long a one-year forward contract with F1=$200 and r=18%, how much do you need to deposit or borrow in a risk-free interest
If you are long a one-year forward contract with F1=$200 and r=18%, how much do you need to deposit or borrow in a risk-free interest account in order to replicate a long position in the underlying asset? Specify whether you borrow or deposit.
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Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
3rd Edition
0987507133, 978-0987507136
