Question
Suppose that the price of the futures contract with expiration date March 31st, 2021 is $100,000 and the cost of financing that is available for
Suppose that the price of the futures contract with expiration date March 31st, 2021 is $100,000 and the cost of financing that is available for every market participants is fixed as 10% annual for the next 1 year. What would be todays fair market value of the futures contract with the same underlying but with the expiration date one year later (March 31st, 2022)? Answers should be rounded to the nearest dollars.
Question 6 (1 point)
Assume the market convention for interest calculation is yearly compounding
Question 6 options:
| 100,000 |
| 100,100 |
| 101,000 |
| 110,000 |
| 111,000 |
Question 7 (1 point)
Assume the market convention for interest calculation is quarterly compounding
Question 7 options:
| 110,151 |
| 110,261 |
| 110,381 |
| 110,471 |
| 110,516 |
| 110,517 |
Question 8 (1 point)
Assume the market convention for interest calculation is monthly compounding
Question 8 options:
| 110,151 |
| 110,261 |
| 110,381 |
| 110,471 |
| 110,516 |
| 110,517 |
Question 9 (1 point)
Assume the market convention for interest calculation is daily compounding
Question 9 options:
| 110,151 |
| 110,261 |
| 110,381 |
| 110,471 |
| 110,516 |
| 110,517 |
Question 10 (1 point)
Assume the market convention for interest calculation is continuous compounding
Question 10 options:
| 110,151 |
| 110,261 |
| 110,381 |
| 110,471 |
| 110,516 |
| 110,517 |
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