Question
The call premium and put premium for K = $1000 and T = 1 year are $90 and $70 respectively. The risk-free rate is 5%
The call premium and put premium for K = $1000 and T = 1 year are $90 and $70 respectively. The risk-free rate is 5% per year. If there is a forward contract written on the same underlying asset and the same expiration as those of the options , what is the forward price supposed to be?
A.) $1021
B.) $1020
C.) $1019
D.) $1018
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
