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The (hypothetical) ABC index spot price is currently at 1302 and the continuously compounded riskfree rat observed futures price on the index is 1335. What
The (hypothetical) ABC index spot price is currently at 1302 and the continuously compounded riskfree rat observed futures price on the index is 1335. What is the implied annual dividend yield per annual? (answer should be in \% term, with 2 decimal places. For example: if your answer is 2.45%, you should fill in 2.45 instead of 0.0245.) QUESTION 7 Assume the following: - Current spot exchange rate: AUD 1.00=4.8CNY - The riskfree rate in Australia is 4.7% p.a. and in China is 5.4% p.a. (assume both rates are compounded continuously) Find the fair price for the forward contract in 6 months assuming CNY is the domestic currency. (Keep your answer to 4 decimal places)
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