Question
lConsider a 1-year futures contract on an investment asset that provides no income. It costs $2 per unit to store the asset, with the payment
lConsider a 1-year futures contract on an investment asset that provides no income. It costs $2 per unit to store the asset, with the payment being made at the end of the year. Assume that the spot price is $450 per unit and the risk-free rate is 7% per annum for all maturities. What is the futures price?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
9th Edition
0814408648, 978-0814408643
