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PLEASE DON'T USE CHAT GPT OR AI MODEL TO ANSWER THIS QUESTION! Forward/Future Contract Case (Hedging using Forward and Futures) Currently May 21, 2021. You

PLEASE DON'T USE CHAT GPT OR AI MODEL TO ANSWER THIS QUESTION!

image text in transcribed Forward/Future Contract Case (Hedging using Forward and Futures) Currently May 21, 2021. You are the finance director of a securities company on the Indonesia Stock Exchange. One investor wants to enter into a contract with your securities company to sel the JCI worth IDR 1 trillion on September 25, 2021. Data: Spot JCl=5,773 Indonesian risk free interest rate =3.50% p.a. Indonesian lending rate =10.00% p.a. The JCl Continuous Dividend Yield is 1.5% p.a. Question: 1. Will you accept this contract? 2. What is your strategy for fulfilling contracts for your clients? 3. Calculate the fair value of the JCI forward on September 25, 2021? 4. What is your prediction for the JCl level on September 252021 ? 5. How do the predictions you make influence your business decisions

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