Question
Let's say a stock is quoted at 17 and pays a dividend at a continuous rate of 2%. The interest rate is 5%. The price
Let's say a stock is quoted at 17 and pays a dividend at a continuous rate of 2%. The interest rate is 5%. The price of a Future on this stock with a maturity of 3 months is 21.
What is your arbitrage gain?
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Investments
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
6th Edition
8120321014, 978-8120321014
